Swiss set floor for franc exhange

THE Swiss franc plunged against the euro and dollar yesterday, after Switzerland’s central bank shocked markets by setting a floor for the euro/Swiss exchange rate in an effort to curb franc strength which has taken a toll on the economy.

The euro rocketed on EBS after the Swiss National Bank set a rate target of 1.20 francs to the euro and said it would enforce it by buying foreign currency in unlimited quantities.

However, analysts questioned whether the move could succeed given the robust demand for safe-haven assets that drove the franc to record highs last month.