The Swiss franc declined against its major opponents in early European deals on Monday, in reaction to comments by the Swiss National President Thomas Jordan that the domestic currency is significantly overvalued and the bank is prepared to intervene in the forex market.

In a speech in Bern on Friday, Jordan reiterated that the Swiss franc is significantly overvalued and presents major difficulties for the economy. "We will remain active in the foreign exchange market as necessary in order to influence monetary conditions," he added.

The negative interest in Switzerland will fulfill a very important role of reducing upward pressure on the Swiss franc, thereby supporting the Swiss economy, Jordan said shareholders of the SNB.

The sight deposits at the SNB rose to CHF 385.99 billion for the week ended April 24, from CHF 383.984 billion in the previous week, data showed on Monday. The increase in sight deposits is seen as an indication of intervention by the central bank.

The franc was trading lower against the greenback, pound and the yen in the previous session.

In early European trading, the franc hit 4-day lows of 1.0391 against the euro, 0.9582 against the greenback and 1.4518 against the pound, down from early highs of 1.0357, 0.9526 and 1.4464, respectively. The franc ended Friday's deals at 0.9532 against the greenback, 1.4479 against the pound and 1.0363 against the euro. The franc is likely to challenge support around 1.05 against the euro, 1.00 against the greenback and 1.46 against the pound.

The franc fell back to 124.42 against the yen, heading to pierce its early 4-day low of 124.31. The euro-franc pair was valued at 124.60 at last week's close. The next possible support for the franc may be located around the 124.00 level.

Looking ahead, Markit's flash U.S. PMI for March is slated for release in the New York session.

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