The franc continues to be a safe haven - this is shown by concerns about France and a possible eurozone debt crisis.
The franc has weakened slightly against the euro in recent months. Nevertheless, private investors should be cautious when investing in other currencies - or hedge against the currency risk.
The Swiss franc has strengthened against the euro in recent weeks, reaching a rate of under 93 cents on Friday. This is a turnaround from its year-low of nearly 95 cents on September 11. The shift is attributed to investors seeking safe-haven assets, such as the Swiss franc, amid turmoil in European bond markets, particularly in France.
Experts from Bank J. Safra Sarasin warn that this trend could lead to an overshooting in the euro-franc exchange rate. The Swiss National Bank may consider cutting interest rates further, currently at zero, due to low inflation, which is at -0.1 percent.
Written by urgent.news from NZZ Wirtschaft's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
