Swiss National Bank acts to weaken strong franc

The Swiss National Bank (SNB) has set a minimum exchange rate of 1.20 francs to the euro, saying the current value of the franc is a threat to the economy.

The move had an immediate effect, with the euro rising from about 1.10 francs before the announcement to 1.21 francs.

HSBC's head of foreign exchange strategy, David Bloom, said the Swiss franc was seen as a safe investment but now gold is the "only safe haven".