A Losing Battle in the Currency War
Less than two months from today, an auspicious anniversary will be marked: the inauguration of a Swiss National Bank policy of buying euros to prevent the currency from falling beneath 1.20 per Swiss franc. On Sept. 6, 2011 the SNB announced that it was "prepared to buy foreign currency in unlimited quantities" in order to maintain that floor.
Fast-forward to the present: The euro hit a two-year low Friday, and it failed to mount a comeback despite a late-day, rumor-driven rally. It seems that traders don't want to hold euros, and "unlimited quantities" are available for purchase. The SNB has kept its word thus far, but how long can they go on buying massive quantities of a currency that has fallen so badly out of favor?...358 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
