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Franc reaches five-year high against euro

The Swiss franc has soared to its highest level in more than five years against the euro, trading early on Wednesday below the SFr1.50 mark.

This content was published on October 22, 2008 - 10:12

The franc is benefitting from investors seeking safe haven currencies such as the franc, yen and dollar.

In August, €1 was worth SFr1.63 but closed on Tuesday at SFr1.53.

Switzerland's export industry considers the SFr1.50 mark as its pain threshold. Below this point, Switzerland's key economic sector will begin to suffer.

During the years of economic boom, according to the Reuters news agency, investors sold safe-haven currencies to fund investments in the euro and other high-yielding currencies and assets.

"The franc is rising against many currencies, that might be a concern for the central bank," Credit Suisse analyst Marcus Hettinger told Reuters.

"We think the Swiss National Bank will cut interest rates in December," he said.

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