(GenevaLunch) – The US dollar has sunk to a record low against the Swiss franc on the prospect that the US Federal Reserve will ease monetary policies (more money-printing). The dollar also fell to a 15-year low against the Japanese yen while the Australian dollar surged to a 27-year high against the US dollar.
On 7 October the dollar fell as low as 0.9555 franc on EBS.
The continued rise of the Swiss franc could have a damping effect on the performance of the Swiss economy as cited in June by the federal government’s Expert Group on Economic Forecasts: “Within the context of the present exchange rate, future export growth is likely to be slightly decelerated but not stalled.”
It defines a damping effect as an exchange-rate-related decline in price competitiveness.
According to the group, “the greatest economic risk for Switzerland is still likely to be a suddenly excessive appreciation of the franc in relation to the euro (flight to the franc as a safe haven).”
