In another reminder of the impact of central banks in markets, CurrencyShares Swiss Franc Trust (NYSEArca: FXF) is down 18% in the year since the Swiss National Bank set a floor on the euro/franc exchange rate.
FT Alphaville notes the level will be one year old tomorrow.
In September 2011, the SNB said it would “no longer tolerate” a euro/franc exchange rate below 1.20. [Swiss Franc ETF in Focus After SNB Move]
Investors were flocking to the Swiss currency as a safe haven from Europe’s debt crisis. The central bank intervened to provide relief to Swiss exporters and the economy, and prevent deflation.
FXF is down 17.8% for the year ended Sept. 4, according to investment researcher Morningstar.