LONDON--The Swiss franc swept up to a fresh record high against the euro Thursday, with the single currency sinking below the 1.4208 franc low charted overnight.
The euro was at 1.4185 francs in mid-morning trading in Europe.
Analysts expect the franc to rise further, as the Swiss National Bank has so far chosen not to intervene to push it back down.
Thursday's fresh high followed a surprisingly robust reading of the Swiss purchasing managers' index for March. Along with other doses of positive economic data, this points to Swiss interest rates rising before rates in the euro zone do--a solid equation for Swiss franc strength.
The SNB is opposed to overly rapid climbs in the Swiss franc, which threaten to generate deflation by lowering import prices. The bank most recently reminded traders of this stance earlier this week.
Last year, the central bank intervened heavily on several occasions to prevent the euro from sinking under 1.50 francs. This year it has used more frequent but smaller stings to slow, but not stop, the currency's ascent.
However, since the central bank has stood on the sidelines as the currency has swept up to a series of record highs in recent weeks, some analysts expect it to allow further franc strength from here.
"It looks clear that the policy has changed and they are happy to allow the euro to keep grinding lower against the franc," said Geoffrey Kendrick, a currencies analyst at UBS AG in London.
