Investors may wonder why the euro is not trading even lower given the almost universal bearish sentiment on the single currency. The answer could lie in Switzerland.
The Swiss National Bank shocked the market on Tuesday by announcing that, as a result of its intervention in the foreign exchange markets, its currency reserves leapt more than 50 per cent last month from $145.6bn in April to $261.9bn in May.
As a result, the SNB is now the seventh-largest holder of reserve assets globally - ahead of Hong Kong, Brazil, India and the European Central Bank.
For more: FT.com / UK - Swiss central bank emerges as key supporter of euro
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