Swiss central bank intervenes to cut franc

The Swiss National Bank (SNB) acted quickly in the currency markets after the UK voted for a Brexit from the European Union, sending the pound plummeting and l money flow to the traditional 'safe haven' currency.

The central bank said: "Following the United Kingdom’s vote to leave the European Union, the Swiss franc came under upward pressure. The Swiss National Bank has intervened in the foreign exchange market to stabilise the situation and will remain active in that market.

By 0845 in London, CHF was up 9% to £0.7642 and 0.8% versus the euro to €0.9234.

Earlier Morgan Stanley said it recommended selling EURCHF (1.02), AUDJPY (target 70) and USDJPY (90) on a "flight to safety", seeing the around 10% downside in sterling and EU equities, with increased concerns over eurozone vulnerabilities making the Polish zloty (PLN) "the best short in EM".

Strategists said Gilt yields could rally 30-35bp to all-time lows, but breakeven inflation could ultimately rise, given weaker GBP.

"ECB support, both potential and existing, argues for buying corporate and sovereign credit into weakness," it reassured.