Swiss franc surges to record against euro

The Swiss franc rose to a record high against the euro yesterday despite the Swiss National Bank's efforts to avoid excessive gains for the currency.

While the Swiss National Bank has kept its benchmark rate near zero for the last 12 months, the diminishing deflation concerns and expectations of a tightening in monetary policy has led to a surge in the safe haven currency. The Swiss franc rose 0.4% to an all-time high of SFr1.4284 against the euro, surpassing the previous record of SFr1.4296 in October 2008, when haven demand for the Swiss currency surged after the collapse of Lehman Brothers. However, the IMF has warned against any sharp Swiss franc rises. "Inflationary pressures are subdued given slack in the economy, and as a...