Bloomberg News

Swiss Franc Strengthens Against Dollar After Nation Sells Bonds

April 11, 2012

The Swiss franc strengthened against the dollar after the country sold bonds amid demand for its assets as a refuge from the euro region’s debt crisis.

The Swiss currency was little changed against the euro. Switzerland auctioned securities maturing in April 2021 and April 2042, a day after six-month bills were sold at a rate of minus 0.251 percent. The franc appreciated against 11 of 16 major peers tracked by Bloomberg today.

The franc rose 0.2 percent to 91.66 centimes per dollar at 4:54 p.m. London time, its third advance in the past four days. Switzerland’s currency was at 1.20105 per euro, from 1.20149 yesterday, having breached the 1.20 per euro ceiling twice in the past week.

The Zurich-based Swiss National Bank established the cap on Sept. 6 to protect exports after investors seeking a haven from the euro-area turmoil drove the currency to a record 1.00749 against the 17-nation euro.

The franc has gained 1 percent this year, making it the third-best performer, after the New Zealand dollar and the Norwegian krone, according to Bloomberg Correlation-Weighted Indexes, which track 10 developed-nation currencies.

Swiss bonds fell, with the yield on the 2 percent security due April 2021 rising four basis points, or 0.04 percentage point, to 0.70 percent. The price of the security was at 111.335 percent of face value.

Switzerland sold 872.3 million francs of 30-year bonds at an average yield of 1.168 percent, and auctioned 177.4 million francs of the 2021 securities at a yield of 0.705 percent.

To contact the reporter on this story: Lukanyo Mnyanda in Edinburgh at lmnyanda@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net


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