Swiss draw line to weaken franc

The move immediately knocked about 8 per cent off the value of the franc,which had soared by a third since the collapse of Lehman Brothers in 2008 as investors used it as a safe haven from the euro zones debt crisis and stock market turmoil. Analysts said that the SNB should be able to defend 1.20 as it can print unlimited francs but that long-term success depended on efforts to deal with the euro zones debt problems.

The current massive overvaluation of the franc poses an acute threat to the Swiss economy the SNB said.