Swiss take steps to lower franc

Switzerland’s central bank is taking aggressive steps to lower the franc’s exchange rate, saying the currency is “massively overvalued” and threatening the Swiss economy.

The Swiss National Bank said it would reduce interbank lending rates to 0.0-0.25% from 0.0-0.75%.

The bank also said it would “very significantly” increase liquidity into the Swiss franc money market.

Following the announcement, the euro spiked 1.8% to 1.1058 francs, while the dollar traded 1.4% higher at 0.7763 franc.

Switzerland’s currency has risen sharply because it is considered a safe haven from the debt and economic woes in Europe and America.

But a stronger currency can hurt a country’s economy by making it harder to export goods.