Franc Traders Challenge SNB as Crisis Meets Negative Yields

From bloomberg.com

For the first time in seven months, traders are testing the Swiss National Bank’s determination to limit the franc’s strength against the euro as Europe’s resurgent debt crisis drives up demand for safer assets. The franc breached the central bank’s cap of 1.20 to the euro on April 5 and April 9, and options investors are predicting even more appreciation. It jumped 1.1 percent versus nine peers in a basket of currencies in March, the biggest gain since July, and is up 1.9 percent from a nine-month low on Jan. 11, according to data compiled by Bloomberg. Demand for Swiss assets is so strong that ... (full story)