(Bloomberg) -- The Swiss franc dropped against the euro, reversing a rally, amid speculation that the central bank may have sold the currency to damp its strength.

The about-face “feels suspiciously like an FX intervention,” Peter Rosenstreich, head of market strategy at Swissquote Bank SA, said in a note.

The franc earlier rose to the strongest level in nearly two months as investors sought the safest assets amid growing anxiety about Deutsche Bank AG’s finances. The Swiss National Bank spokesman Werner Abegg declined to comment.

The franc weakened 0.3 percent to 1.08773 per euro as of 1:09 p.m. in London, having appreciated to 1.08110, the strongest since Aug. 2. That brought its quarterly decline to 0.3 percent, after appreciating 1 percent in the previous quarter.

“The price action does suggest official-style activity,” said Neil Jones, head of hedge fund sales at Mizuho Bank Ltd. said.

--With assistance from Catherine Bosley To contact the reporter on this story: Anchalee Worrachate in London at To contact the editors responsible for this story: David Goodman at, Todd White, Paul Armstrong

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