DÉCRYPTAGE – A quintessential safe haven, the Swiss franc has appreciated significantly since Donald Trump returned to the White House. Export companies are focusing on higher value-added products.
“It’s a miracle that they continue to survive with their currency!” This reflection from a Parisian bank executive speaks volumes about the strength of the Swiss model. As a safe haven in troubled times, the franc has reached new heights in recent weeks, putting the entire Swiss economy under pressure. Even though the conflict in the Middle East has tended to strengthen the greenback since this weekend. The Swiss franc is currently trading around 1.09 euros and 1.28 dollars, compared to 1.05 euros and 1.1 dollars a year ago, and 0.90 euros and 1.06 dollars five years ago. The rapid appreciation of the national currency against the euro and the dollar mechanically penalizes the exports of local companies. A situation further complicated by American tariffs.
“The Swiss franc has always been a strong currency, but the slow erosion of the dollar’s status as a safe haven since the election of Donald Trump has further accentuated the movement,” emphasizes Charles-Henri.
