The Swiss franc's fall to its weakest since the collapse of an official cap in 2015 dominated major currency markets on Thursday. The dollar recovered from a fall to 2-1/2 year lows. The Swiss had already fallen almost 2 percent this week. It was held largely steady for the past two years between capital seeking the security of Switzerland and a campaign of official intervention against the currency.
SNB holds 3-month Libor target range
The Swiss National Bank faces the prospect of adjusting its monetary-policy toolkit because the interest-rate benchmark it targets will be discontinued in 2021.The SNB has been targeting three-month Swiss franc Libor since 2000. Yet Libor, the benchmark underpinning more than $350 trillion of financial products, will be phased out by the end of 2021. In the wake of the manipulation allegations, Switzerland’s central bank joined international efforts to reform reference rates. There has also been a Swiss working group looking at the two rates for the local money market, the secured Swiss Average Rate Overnight (SARON), and unsecured TOIS.