"We think they are going to want to bring this percentage down in the weeks ahead and their selling of euros against most major currencies other than the dollar could gather pace"
- Ned Rumpeltin, strategist at Standard Chartered Bank
The Swiss National Bank now holds 60 per cent of its reserves in the single currency, 22 per cent in the U.S. Dollar and smaller holdings in the Japanese Yen and Sterling. However, during the recent months, the SNB increased its share of less-liquid currencies, including the Australian Dollar and Swedish Crown. The tendency will remain the same in the future, with continuing diversification out of the Euro.
"We think they are going to want to bring this percentage down in the weeks ahead and their selling of euros against most major currencies other than the dollar could gather pace," said Ned Rumpeltin, G-10 currency strategist at Standard Chartered Bank.
"Quite the opposite actually - the SNB is interested in actively reducing its large euro exposure," said Evan Brown, an analyst at Morgan Stanley.
The Swiss blue-chip index SMI, a measure of the largest and most actively traded companies, advanced 1.04 per cent to 6,774.02. The broader Swiss Performance Index rose 1.02 per cent to 6,241.30.
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