Maechler Says SNB Ready To Intervene In Forex Markets After U.S. Election

(RTTNews) - The Swiss National Bank stands ready to intervene in the foreign exchange markets to weaken the franc, if there is strong safe-haven demand following the U.S. election, the bank's board member Andrea Maechler said Monday.

"The uncertainties are high," Maechler said in an interview to the public broadcaster SRF, while refusing to comment on any possible outcome of Tuesday's election and its impact on Swiss franc and the financial markets.

"But what I can say: As with the Brexit vote - we are ready. My team is ready."

"And the National Bank will be there to intervene, if necessary, in the foreign exchange markets," she added.

The Swiss franc surged late June after the surprise 'Brexit' vote triggered a safe-haven rush. Ahead of the June referendum, the bank had signaled that it would intervene in the currency markets to defend the franc.

A repeat of the scenario was already signaled last week, when the Swiss franc rose its strongest level since June in the run-up to the U.S. presidential election, to trade at 1.07 versus the euro.

The SNB had abandoned its 1.20 CHF/EUR peg in January 2015.

A victory of Donald Trump in the election could see investors rush to safe havens such as the Swiss franc and German Bunds, analysts said.