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.
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