The Swiss franc € safe-haven status has been heightened by recent market turmoil, pushing it close to its record high around SFr1.43 against the euro in the past few weeks. This represented the first time a leading central bank has intervened in the foreign exchange markets since 2004, when the Bank of Japan sought to weaken the yen.

The central bank said it had implemented its decision, with traders confirming that the SNB had been active in the market, selling the Swiss franc against the euro and the dollar. € In view of this development, the SNB has decided to purchase foreign currency on the foreign exchange market to prevent any further appreciation of the Swiss franc against the euro, € the central bank said. But the franc fell to its lowest level this year after the Swiss National Bank said the currency € strength represented an € inappropriate tightening of monetary conditions € as it battled against a slowdown in the Swiss economy.

Swiss intervention sparks talk of € currency war € The Swiss National Bank sparked talk of a global currency war on as it surprised investors by intervening to bring down the Swiss franc.