Franc plunges as Swiss set euro-franc floor SNB vows to buy ‘unlimited quantities’ of euros to defend rate

By William L. Watts, MarketWatch

FRANKFURT (MarketWatch) — The Swiss franc plunged dramatically versus the euro and other major rivals Tuesday after the Swiss National Bank took the extraordinary step of setting a floor for the euro/Swiss franc exchange rate at 1.20 francs and vowed to buy “unlimited quantities” of euros to defend it.

In a breakneck swing, the euro EURCHF +8.56%  traded at $1.2019 versus the Swiss franc, a rise of 8.8%, as traders stampeded out of short euro/Swiss franc bets. Other currencies also rose versus the franc, with the U.S. dollar USDCHF +7.82%  jumping 8.1% to trade at 84.90 centimes. There are 100 centimes in a franc.