The Swiss franc hit a two-week low against the euro and the dollar on Monday, on talk that the Swiss National Bank was intervening to weaken the currency and on a report that it was targeting a new informal band.
A Swiss newspaper, Schweiz am Sonntag, reported on Sunday that the SNB is unofficially targeting an exchange rate of 1.05-1.10 francs per euro, citing sources close to the bank. A spokesman for the central bank declined to comment on the story.
On Jan. 15, the SNB shocked markets by removing a cap of 1.20 francs per euro, a move that saw the Swiss franc initially surge more than 40 percent. It has since given up some of those gains and now trades about 13 percent higher against the euro compared to just before the cap was removed.
Data released on Monday showed that bank deposits with the SNB rose in the week ending Jan. 30, fueling speculation that the central bank has been active.