MW:Swiss Nat'l Bank to defend 1.2-franc-to-euro rate
By Robert Daniel
TEL AVIV (MarketWatch) -- The Swiss National Bank affirmed that it would defend a minimum rate of 1.2 Swiss francs to the euro "with the utmost determination." In a Thursday statement, it said it would buy "unlimited" foreign currency and would take other measures "if the economic outlook and the risk of deflation" require. "Even at the current rate, the Swiss franc is still high and should continue to weaken over time," the central bank said. "In Switzerland, the pace of growth slowed considerably in the third quarter," the SNB said. "The substantial appreciation of the Swiss franc over the summer is weighing heavily on the Swiss economy." The Swiss franc traded about 1% higher against the euro and the U.S. dollar after the Swiss National Bank statement.
