Swiss franc overvalued but set to weaken -SNB chairman
ZURICH (Reuters) - - The Swiss franc is too strong but should weaken, the Swiss National Bank's chairman has told a Swiss newspaper, adding that the bank was ready to intervene in foreign exchange markets if necessary, to influence the currency.
"The franc is significantly overvalued and should therefore weaken over time," Thomas Jordan said in a discussion with readers of Schweiz am Sonntag, according to an article due to be published in the newspaper on Sunday.
"In addition, we have emphasized we will become active in foreign exchange markets if required," Jordan said.
The SNB abruptly abandoned a 1.20 francs per euro cap on Jan. 15, sending the currency soaring and raising concerns about Switzerland's export-reliant economy.
It has replaced the cap with negative interest rates and a charge on major cash deposits held with the central bank.
The Swiss franc closed at around 1.034 per euro in European trade on Friday.
(Reporting by Alice Baghdjian; Editing by Crispian Balmer)
