CurrencyShares Swiss Franc Trust (NYSEArca: FXF) was down more than 4% in early U.S. trading Thursday following reports the Swiss National Bank is considering temporarily pegging the currency to the euro.

The central bank was mulling the move to halt the Swiss franc’s rise, the New York Times reported.

Continued stress in the Eurozone and worries over the U.S. deficit are driving investors into perceived safe havens such as the Swiss franc. The SNB days the currency is massively overvalued.

CurrencyShares Swiss Franc Trust follows the franc against the dollar.

“It is telling that the Swiss National Bank has, so far, not come out and sold Swiss francs directly in the market,” said Simon Smith, chief economist at FX Pro, in a Financial Times report. “The last round of intervention led to substantial losses on its balance sheet, which have been exacerbated this year by the franc’s continual rise.”

The franc has risen about 14% over the past month, hitting record highs against the euro and U.S. dollar.  [Swiss Franc ETF Takes A Breather After Latest Intervention.]

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