The Swiss franc continued to show major volatility on Tuesday, as the country's central bank signaled that it had not completely given up intervening in the currency markets.
The Swissie fell to its lowest level against both the euro and the dollar since the Swiss National Bank (SNB) dropped its three-year peg to the euro. The Swiss franc slipped to 1.0345 against the euro and 0.9126 against the dollar, although by midday GMT it had pared some losses and was trading at 1.0190 against the euro and 0.9022 against the dollar.
Comments by Jean-Pierre Danthine, the SNB's vice-chairman, were credited for the spike. He told the Swiss national newspaper TagesAnzeiger that the central bank was still looking to intervene in the foreign currency market to ease monetary policy, despite ditching its currency cap on January 15.
"Giving up the cap means a tightening of monetary policy. We accept this, but only up to a point. We are fundamentally prepared to intervene in the foreign exchange market," he said in the interview, according to Reuters.