The Swiss franc has fallen sharply following reports that the Swiss National Bank (SNB) is planning to set a temporary target range for the currency’s exchange rate with the euro.
The franc hit all-time highs against the euro and the dollar last week as investors sought safe assets amid market turmoil and fears about government debt.
The Swiss currency opened 2.9 per cent lower against the euro on Monday. The euro was worth 1.136 francs at close of buisiness, up from a record low of 1.007 francs last Tuesday. Meanwhile, the dollar was up 2.5 per cent at 0.7940 francs at close of business in Zurich.
Swiss media reported at the weekend that the SNB was planning further measures to weaken the overvalued franc.