The Swiss franc continues to climb against the dollar, gaining more than 12 percent since January and now trading at 79 cents.
UBS predicts the greenback will weaken further over the next year, which could make the franc even stronger. While this benefits Swiss travelers abroad, it creates real headaches for the economy.
Exporters see their products becoming more expensive on international markets, eroding competitiveness.
U.S. tariffs already weigh heavily on many Swiss goods, and high-tech industries are particularly exposed.
Even the pharmaceutical giants Roche and Novartis plan to move part of their production to the United States, threatening one of Switzerland’s key growth pillars.
UBS warns that if this trend continues, the strong franc risks turning from a safe haven into a long-term drag on growth.
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