By Anna Rascouet and Matthew Brown Nov. 26 (Bloomberg) -- The Swiss franc weakened as much as 0.3 percent against the euro, after strengthening to the highest level in five months, on speculation the nation’s central bank sold the currency. The franc also depreciated against the dollar after climbing to parity with the greenback yesterday for the first time in 19 months. The Swiss National Bank declined to comment on the franc’s drop, spokesman Werner Abegg said. The Bank for International Settlements also wouldn’t comment. “I’ve seen them,” said Martin Furrer, a currency trader in Luzern at Luzerner Kantonalbank AG. “They are buying the dollar. They are worried about the euro level.” The franc was little changed at 1.5084 per euro as of 11:51 a.m. in Zurich, after appreciating to 1.5012, the most since June 24. The Swiss currency dropped 0.4 percent to 1.0004 against the dollar, after strengthening to 99.18 centimes, the second straight day it reached parity with the U.S. currency. “If you look at the move we’ve seen, it looks like somebody had his hands in the market,” said Andreas Kueffer, a trader in Zurich at Zuercher Kantonalbank. “We have seen some crazy movements between March and now. They have never confirmed but it looks like SNB intervention.” Lisa Weekes, a spokeswoman for the Bank for International Settlements, said “we don’t comment on movements in the currency market.” ‘Weak Franc’ SNB President Jean-Pierre Roth said on Nov. 24 that central banks may “soon” start withdrawing unconventional measures as the global economic recovery gathers pace. A report tomorrow may show the nation’s leading economic indicators rose this month to the most since December 2007, according to a Bloomberg survey. “It doesn’t matter if they buy dollars or euros, what they want is a weak franc against the euro,” said Lutz Karpowitz, a currency strategist at Commerzbank AG in Frankfurt. The SNB has been selling the franc since March to weaken it and stave off deflation. It also lowered borrowing costs close to zero and purchased corporate bonds. The franc has gained 1.9 percent against the dollar and 0.4 percent versus the euro in the past month as some investors bet that signs the economy is recovering may spur the central bank to stop selling the currency. Gross domestic product may rise 0.4 percent in 2010 after dropping 1.7 percent this year, the government estimates. To contact the reporter on this story: Daniel Tilles in London at dtilles@bloomberg.net

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