The Swiss National Bank announced today that it was dropping its three year-long peg to the euro. The franc soared on the news gaining as much as 30% against the euro and as much as 25% against the dollar before settling in with about a 15% gain against the USD. The revaluation was a punishing blow to Swiss exporters. The Swiss stock market is down about 8.5% on the news, but in USD terms it is up better than 5%.
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Jeremy Jones, CFA is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Jeremy is a contributing editor of youngresearch.com.