Managers split on Swiss franc cap

The Swiss central bank's decision to cap the franc has split investors, with Investec's currency head Thanos Papasavvas backing the move while Jim Rogers called it a "huge mistake" that could completely debase the currency.

The franc fell as much as 9% against the euro and 7% against the dollar last week when the Swiss National Bank (SNB) set a minimum exchange rate of 1.20 francs to the euro, and committed to buying foreign currency in unlimited amounts to ensure the success of the policy. The franc’s enduring strength against the euro, US dollar and sterling intensified over the summer as investors sought perceived safe havens while markets tumbled. On 9 August the franc neared parity with the euro at a record low of 1.048, and at the end of August it was the world’s strongest currency, up 16% against ...