Moves to tame Swiss franc disappoint

The central bank said it would boost liquidity by expanding banks’ sight deposits to 200 billion francs from 120 billion francs (£92.6bn) and take additional steps if needed, even as the government ran the rule over possible measures of its own to offset the impact of the currency’s gains on economic growth.

The franc rose as much as 2 per cent against the euro after the SNB announcement, which fell short of expectations the bank might set a lower limit for the euro-franc exchange rate.

“The market was expecting far more radical measures ...like targeting a specific exchange rate. This is more of the same, and is inadequate in an environment where investors are seeking safe havens,” said Lena Komileva of Brown Brothers Harriman.

Worries about the global economy and debt in the euro zone and the United States have prompted investors to pile into the safe-haven franc. As a result it has soared from one record to another against the euro and the dollar.