The Swiss government said today it would spend two billion francs (€1.74 billion) to counter the impact of the strong franc on the domestic economy.
'The measures taken would 'reinforce the sectors hit by the unfavourable exchange rate and would prevent the relocation of jobs abroad,' the government said in a statement.
Industries including exports, tourism, innovation, research and infrastructure are expected to benefit, although no details were given on the specific measures.
Economy Minister Johann Schneider-Ammann said a taskforce will decide in the coming days 'in what exactly and how these funds would be invested'.
Switzerland's export industry has been hit hard by the strength of the franc against major currencies.
Earlier, the Swiss central bank announced the third round of liquidity measures in two weeks to cool demand for the franc. But the currency was trading at highs of 1.13 against the euro and 0.7893 against the dollar this afternoon.
It injected 80 billion francs (€89 billion) in liquidity into the system.
The Swiss National Bank announced it was expanding sight deposits, or funds that commercial banks can withdraw without notice, from 120 billion to 200 billion francs.
'In order to achieve this new target level as quickly as possible, it will continue to repurchase outstanding SNB Bills and to employ foreign exchange swaps,' it said in a statement.
This was the bank's second intervention in a week, after having increased liquidity from 80 billion francs to 120 billion on August 10. 'Nevertheless, the Swiss franc remains massively overvalued,' the central bank said.
The country's central bank is under increasing pressure to stem the currency's rise, as investors seek a safe haven from fears of sovereign debt crisis in developed economies and sluggish economic growth.
Export-led Switzerland has been worried about the rise of the franc, with several Swiss firms blaming the strength of the currency for reducing earnings they were repatriating.
The Swiss franc has risen around a quarter against the dollar and 20% against the euro since 2009. Last week, it came close to parity with the euro and reached a record 0.7085 against the dollar. Also last week, top Swiss central bankers said in interviews that all options were on the table to stem the currency's rise, including pegging it to the euro.
