The euro now costs less than a franc -and is continuing to fall against the franc.
It’s only been cheaper once before, in January 2015, when the Swiss National Bank dropped the 1.2 peg.
But the difference today, say the analysts, is there’s no panic.
The traditional thinking is that a strong franc is bad for exporters – but in the current situation the exchange rate is reflecting the level of inflation within the Eurozone, which is far higher than Switzerland.
Many market watchers believe the franc is currently fairly valued against the euro – and so don’t expect any intervention by the SNB.
But as it’s holiday season and many will be in the eurozone, Swiss tourists will be protected against the inflationary pressures in Europe as the strong franc will take the edge off.
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