An explosion 10-pips higher to 1.2021.

Interestingly, EUR/CHF also rallied at the end of last month.

Reserve data released today showed a massive 365B francs at the end of Q2 compared to 245B at the end of March. Nearly all the increase was in euros, which is a surprise because many thought diversification had been adding to euro losses. The SNB increased its share of AUD reserves to 4% but that is still a small number and lower than most expected. The WSJ has more:

So, what is the problem for the SNB?

It now has a reserve structure that leaves it highly exposed to a weak currency that could weaken even further if the euro-zone debt crisis continues to rumble on.

Because of that weakness, the SNB has been unable to pursue its previous policy of diversification out of the euro for fear of driving the single currency even lower.