The Swiss National Bank (SNB) has reported a decrease in total sight deposits for the week ending 14th June, with figures dropping to CHF 453.5 billion compared to CHF 459.8 billion in the previous period. This decline marks a continued trend that has been observed since April, indicating possible intervention by the SNB in the foreign exchange (FX) market.

One plausible explanation for this decrease is that the SNB may be selling foreign currencies to acquire Swiss francs, a move aimed at bolstering the value of the Swiss currency to counter imported inflation pressures.

In addition to the total sight deposits, domestic sight deposits also saw a decrease, falling to CHF 445.3 billion from CHF 450.1 billion in the prior period. These developments suggest a strategic approach by the SNB to manage currency valuations amidst economic fluctuations.

Market analysts are closely monitoring these actions by the SNB, as they could have implications for the Swiss franc’s performance in the global market. The SNB’s interventions are part of its efforts to maintain stability in the currency markets and support the Swiss economy.

As the situation continues to evolve, investors and traders are advised to stay informed about developments in the FX market, particularly regarding the Swiss franc. The SNB’s actions are likely to influence currency dynamics and market sentiment in the coming weeks.