Rise of Swiss franc exposes limitations of central bank power

London

THOMAS Jordan's struggle to control the franc shows just how unforgiving foreign exchange markets can be.

The first two-month drop against the euro since April last year hasn't convinced traders to give up on another rally in Switzerland's currency. Options still show a better-than-even chance it'll appreciate to parity in the next year, from 1.06 per euro on Tuesday in London.

The persistence of speculation on…