SNB faces battle to maintain franc currency floor

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The Swiss National Bank (SNB) may struggle to maintain a minimum exchange rate of Sfr1.20 against the euro, despite pledging to purchase "unlimited" quantities of foreign currency to reinforce the Swiss franc floor, analysts have said.

On Tuesday, the SNB took the unprecedented step of announcing a minimum exchange rate for the Swiss franc, saying it would "no longer tolerate a euro/Swiss franc exchange rate below the minimum rate of Sfr1.20".

Shortly after the SNB's announcement, Philipp Hildeb