瑞士法郎

Swiss move to curb franc

The Swiss National Bank stunned financial markets on Tuesday by setting a ceiling for the Swiss franc against the euro in a desperate attempt to prevent the strength of its currency pushing the country into recession.

The SNB’s action, which will prevent the exchange rate going through SFr1.20 to the euro, came after previous measures to weaken its currency failed as the worsening eurozone crisis prompted a flight to safety by investors.

Analysts said the move would intensify a global currency war as countries fought to protect their exporters and could provoke further instability in financial markets.

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