Euro declines after policy shift by Swiss central bank

Posted On: January 16, 2015

The euro depreciated 0.4 percent on Friday to 1.1587 per U.S. dollar, Bloomberg reported. On Thursday, the currency fell to 1.1568 per U.S. dollar, marking its weakest rate since November 2003. The euro rose 0.1 percent during the trading session to 135.31 yen and fell 3.6 percent throughout the week.

The euro has declined 6.3 percent in the past month, establishing it as the worst performer of the 10 developed-nation currencies tracked by Bloomberg. The median estimate of fifty analysts surveyed by the publication sets the euro at a 1.15 percent fall by the end of 2015.

"With the Swiss central bank's policy shift, the euro slid and the franc surged, creating a spike in volatility, and that's led to a risk-off trade," Kengo Suzuki, chief currency strategists with Mizuho Securities Co. in Tokyo, told Bloomberg.

The Economist reported that the euro fell to 1.17 per U.S. dollar on Wednesday, which matched its introductory rate on Jan 1, 1999. The euro has fallen gradually in recent months, however, its decline could be persistent. The Greek election on Jan 25 could signal the country's departure from the euro zone. The publication referred to the election as the currency's most immediate threat.

Category: Industry News

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