BLBG: Swiss Franc Weakens Against Euro on Increase in German Business Confidence
The franc depreciated to its weakest level in two months versus the euro after a measure of German business confidence unexpectedly climbed, reducing demand for the Swiss currency as a haven.
The franc also slipped against the dollar after the Munich- based Ifo institute said today its business climate index rose to 107.6 from 106.8 in September, the highest since May 2007. The German government yesterday more than doubled its 2010 growth forecast to 3.4 percent, boosting confidence in the euro- region recovery.
“Stronger European data, for example today the German Ifo index, points to a little bit of a modest upside for the euro against the Swiss franc, probably to the 1.36 area in the very near term,” said Marcus Hettinger, a currency strategist at Credit Suisse Group AG in Zurich.
The franc declined 0.6 percent to 1.3554 per euro at 10:11 a.m. in London, after weakening to 1.3577, the lowest since Aug. 12. It depreciated 0.7 percent to 0.9747 per dollar, from 0.9678 yesterday.
The franc has climbed 4.2 percent this year against a basket of currencies, according to Bloomberg Correlation- Weighted Currency Indexes.
To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net.
To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net.
