Swiss National Bank makes intentions clear to curb excessive franc appreciation

The safe-haven franc rose to its highest level against the euro since August 2015 after UK's vote to leave the EU shook markets. It was the biggest one-day jump since the Swiss National Bank removed its franc peg to the euro on Jan. 15, 2015.

The large central banks reacted to the Brexit shock and affirmed that they would ensure ample liquidity supply. On Friday the Swiss National Bank intervened and gave a rare confirmation of its intervention. The SNB normally declines to comment on whether or not it has been active in the currency market. The action was meant to make everyone realise that the Swiss central bank will not tolerate an excessive appreciation of the franc.

"Following the United Kingdom's vote to leave the European Union, the Swiss franc came under upward pressure," the SNB said in a statement. "The Swiss National Bank has intervened in the foreign exchange market to stabilise the situation and will remain active in that market."

The euro recovered to trade 0.6 percent lower on Friday at 1.0846 francs, having hit a low of 1.0623 francs early in the London session and is currently holding around 1.0753 levels. The dollar also came off highs against the franc, with USD/CHF last at 0.9725, after rising to three-week highs of 0.9801 earlier. USD/CHF was trading 0.31 pct higher at 0.9735 at 0730 GMT