Franc cap sees SNB reserves rise

Foreign exchange reserves held by the Swiss National Bank rose by 29bn Swiss francs (£20.4bn) in September, the month it began defending a currency cap on the soaring franc, though it said money market injections accounted for most of the rise. Reserves rose to 282.35bn Swiss francs, according to the SNB figures released yesterday. The data sent the franc sharply lower as markets responded to signs the bank's action in the currency market to cool the safe-haven currency had been relatively light, though one analyst suggested heavier interventions might be needed if the economic backdrop worsened. The SNB set a cap of 1.20 Swiss francs per euro on the currency on 6 September.