Economy, Business And Markets

Swiss Franc Set For Jump

Swiss Franc  Set For JumpSwiss Franc  Set For Jump

The Swiss franc is set for a huge jump versus the rial on Saturday, as Tehran catches up to late Thursday’s changes in the global arena. Stunning monetary-policy shifts in Switzerland and India sent markets on wild rides. In India, Reserve Bank Governor Raghuram Rajan cut his key interest rate for the first time in 20 months, and Swiss National Bank (SNB) President Thomas Jordan abandoned a three-year-old cap on the franc’s gains and lowered the already negative interest rate on deposits from minus 0.25% to minus 0.75%, according to Bloomberg. Both decisions were unscheduled and, in Switzerland’s case, unexpected. In the wake of Thursday’s announcement, the Swiss franc soared against the euro by almost 40%, though this gain was subsequently halved. The world’s seventh-largest reserve currency also surged as much as 27% against the dollar. The Swiss currency, which closed at 34,200 rials on Thursday evening in Tehran, may jump by over 20%, according to Financial Tribune estimates, Though its moves will be hindered by the low volume of the Swiss franc’s trade in the capital.