How dollar weakness is becoming a Swiss problem

How dollar weakness is becoming a Swiss problem

The euro, the currency of Switzerland's main trade partner, has firmed this year, suggesting the franc's rise is largely down to its 4.6% year-to-date gain versus the greenback, although on Wednesday it dipped to a seven-week low."This is a story not only about the euro, but also it is important for the SNB to mitigate the depreciation of the dollar," said Valentin Bissat, senior economist at Mirabaud.Part of the SNB's dilemma, and the main reason for its intervention policy, is that everyone rushes to buy the safe-haven franc when a crisis hits.Now, with interest rates at minus 0.75% and in view of its twin mandates of ensuring price stability and supporting exports, the SNB has few other effective options but to intervene to keep a lid on the franc.But this