Swiss central bank buys euros to fight deflation, dollar rises


The Swiss National Bank (SNB) has aggressively intervened in the currency market to weaken the Swiss franc and strengthen the euro, an action that's solidified bullish sentiment in equity markets, boosting the dollar.

The SNB cut its main lending rate to 0.25% from 0.50%, and, equally significant, it said it would buy currencies to end the rise of the Swiss franc, Bloomberg News reported Thursday.