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Swiss intervenes to stabilise Swiss franc

Zurich - Switzerland's central bank said on Friday it had "intervened" in the foreign exchange market to stabilise the Swiss franc, considered a safe haven currency, following the Brexit vote.

"Following the United Kingdom's vote to leave the European Union, the Swiss franc came under upward pressure," the bank said in a statement, adding that it had "intervened in the foreign exchange market to stabilise the situation and will remain active in that market."

As the result of the vote became clear, the Swiss franc strengthened considerably against the European single currency, trading at just 1.06 francs to the euro early on Friday compared to 1.10 francs to the euro seven hours earlier.

The Swiss franc, long considered a safe haven currency, already saw its value surging after the publication of various polls in the run-up to Thursday's vote suggesting Brexit could win the day in the June 23 referendum.

A stronger franc hits Swiss exporters, which are forced to squeeze costs and cut prices to remain competitive on an international market.

The Swiss central bank introduced a negative deposit rate early last year after it abruptly abandoned its three-year effort to hold down the franc's exchange rate to protect exports.

The central bank last week voiced hope that British voters would opt to remain in the EU and maintained it monetary policy in place.


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