April 5, 2018 / 5:53 PM / in a year

Swiss National Bank's Maechler says franc remains a safe haven

ZURICH, April 5 (Reuters) - The Swiss franc continues to be seen as a safe haven investment despite a recent depreciation but pressure on the currency is still there, Swiss National Bank governing board member Andrea Maechler said on Thursday.

“The pressure on the Swiss franc is still there, the currency has devalued and the overvaluation has reduced, but the franc is still a safe haven,” she told an event in Zurich.

SNB alternate governing board member Dewet Moser said the central bank stood ready to take action if the franc started to rise again.

“We know from the experience of the past years that the market situation can suddenly change. The SNB... therefore must remain alert,” Moser said. “We analyse the events very closely and are ready to influence developments if necessary.”

The SNB has deployed negative interest rates and currency market interventions over the last three years to check the rise of the franc whose strength weighs on the export-reliant Swiss economy.

The strategy has begun to bear fruit, with the currency losing ground versus the euro this year. (Reporting by John Revill; Editing by Susan Fenton)

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