May 5, 2020 / 11:45 AM / 3 months ago

Swiss franc falls vs dollar after German court ruling

LONDON, May 5 (Reuters) - The Swiss franc weakened more than half a percent against the U.S. dollar on Tuesday after a German constitutional court ruled that the Bundesbank must stop buying government bonds if the European Central Bank cannot prove those purchases are needed.

The verdict sent the euro reeling across the board with the single currency falling by 0.7% against the U.S. dollar and 0.6% versus the Japanese yen.

Against the Swiss franc, however, the euro barely budged, with traders reporting a pick-up in intervention by the Swiss National Bank, the country's central bank.

Sight deposits at the SNB have grown rapidly in recent weeks as authorities have stepped up their intervention measures around the 1.05 francs per euro levels.

Traders said some of the intervention was also routed via U.S. dollars with the franc weakening to $0.87075 versus the greenback. (Reporting by Saikat Chatterjee; editing by Carolyn Cohn)

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