Tuesday, July 3, 2007

Swiss Franc Drops by Most in Two Weeks Versus Euro After Inflation Report

(Bloomberg) -- The Swiss franc fell by the most in
more than two weeks after a report showed Switzerland's inflation
quickened by less than economists expected in June, prompting
speculation so-called carry trades will persist.

The currency fell from near a three-week high after a report
showed consumer prices rose 0.6 percent in the year. Economists
in a Bloomberg survey had forecast a rise to 0.7 percent. The
data make it less likely the Swiss National Bank will raise its
main lending rate fast enough to close the gap with the European
Central Bank's, and improve the appeal of holding local assets.


Read more at Bloomberg Currencies News

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