The Swiss franc has gone a little bonkers in the past few weeks.
The franc was already at record highs as a result of the eurozone crisis. But the shambles in the US and recent suggestions Japan will intervene to stem the yen’s gains have accelerated the pace of the Swiss currency’s gains.
Concerned that this will only add the woe of the country’s exporters, the Swiss National Bank today took action. But in such uncertain times, even saying you will cut rates “as close to zero as possible”, and pledging to intervene if appreciation continues, counts for little. This from the FT’s Peter Garnham: