Swiss Franc Threat May Force SNB Action After Record Loss

Switzerland’s central bank may be forced to resume currency interventions for the first time in more than a year in a move that could burden it with billions of francs in further losses.

Officials led by Swiss National Bank President Philipp Hildebrand face a choice between allowing the currency to extend record gains or seeking to mitigate its impact on the economy. Any intervention risks exacerbating the central bank’s accumulated loss of $36 billion in the 1 1/2 years through June.