The central bank said it would raise overdrafts for retail banks to 120 billion francs from 80 billion francs and conduct foreign exchange swap transactions to ease the value of the franc.

“The SNB is keeping a close watch on developments on the foreign exchange market and on financial markets,” the bank said.

“If necessary, it will take further measures against the strength of the Swiss franc.”

The move came a day after the franc rose to a new record against the dollar and euro, almost reaching parity with the 17-nation currency, which has been buffeted by worries about European government debt.

The Swiss franc is traditionally considered a safe haven asset for investors to park their cash and has been bid up sharply recently amid the turmoil in financial markets.

The Swiss National Bank has been under pressure from companies and the government to do more to ease the export-sapping appreciation of the currency. Economists have predicted a rise in unemployment and slower growth later this year.

The Swiss Cabinet held an emergency meeting on the issue Monday attended by SNB President Philipp Hildebrand.

Previous attempts by the SNB to soften the franc have failed due to overwhelming investor demand for the currency, along with gold, which has also hit record highs.

Analysts remain skeptical whether this latest attempt will work either.

“With liquidity already ample in Switzerland, the Swiss authorities could be doing little morning than pushing on a string,” said Jane Foley, senior currency strategist at Rabobank International.