November 29, 2017 / 8:00 PM / a year ago

SNB's Zurbruegg says Swiss franc still susceptible to safe: haven pressure

FILE PHOTO - Swiss National Bank (SNB) Vice-Chairman Fritz Zurbruegg attends a news conference in Bern, Switzerland, June 15, 2017. REUTERS/Denis Balibouse

ZURICH (Reuters) - Swiss National Bank board member Fritz Zurbruegg said on Wednesday that the Swiss franc remains susceptible to safe-haven pressure, adding the central bank remained ready to intervene to stem upward pressure on the currency.

Pressure had decreased following the French presidential election earlier this year, he said. Nonetheless, the situation remained fragile and the franc remained highly valued, he said. It might not have reached a sustainable level following its weakening against the euro.

Exchange rate developments, as well as developments in credit and mortgage markets, were two main risks.

“We are very worried in terms of leverage building up in private households,” Zurbruegg told the Swiss Risk Association at an event at the University of Zurich. “It is not only private households. We are worried how exposed the banks are.”

Reporting by Angelika Gruber,; writing by Brenna Hughes Neghaiwi, editing by Larry King

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