Swiss Franc Stages Historic Rally as SNB Move Shocks Market

The franc gained against every currency on earth after Swiss National Bank’s unexpected decision to abandon the currency’s cap versus the euro drove one of the biggest shakeups in foreign-exchange history.

The euro dropped the most against the franc since the common currency’s 1999 inception as the SNB’s decision boosted speculation the European Central Bank will announce additional stimulus measures when it meets Jan. 22. The yen rallied and volatility jumped to a more than one-year high as investors sought the safest assets amid the rout. Canada’s dollar, the Russian ruble and other commodity currencies slumped as oil plunged to an almost six-year low.