What Happened to the Swiss Franc?

What Happened to the Swiss Franc?
The entrance to the Swiss National Bank is pictured in Berne, Switzerland, on July 16, 2012. AP Photo/Keystone, Gaetan Bally
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NEW YORK—One of the world’s safest investments — the Swiss franc — has swung wildly this week after the central bank in Switzerland announced it would scrap its policy of limiting the rise of the currency.

It may seem like an arcane move, but it’s not. The Swiss National Bank’s surprise decision on Thursday caused the franc to surge against the euro and dollar, sending shockwaves through the global financial system.