LONDON -(Dow Jones)- Asset manager clients of UBS AG (UBS) last week sold euros at the fastest pace since November 2011, the bank said Monday, illustrating a “torrid” week for the single currency.
Overall euro flows for the period were the second-largest of the year so far, the Swiss bank, the fourth-largest currencies-dealer by market share, said in a note to clients.
“The biggest damage to the currency was done not [against the dollar] but against the [Swiss franc],” the bank added, with total sales in the euro against the franc the third-strongest on record, with particularly heavy selling from hedge funds.
There is speculation a break of the Swiss National Bank’s limit of CHF1.20 to the euro is possible, it added.
“A Greek exit from the euro zone would prove a stern test for the SNB,” it said.