Swiss franc falls to lowest level in three years

The value of the Swiss franc continued to decline last month, falling to its lowest level for three years. The currency has lost most ground against the US dollar.

The value of the Swiss franc continued to decline last month, falling to its lowest level for three years. The currency has lost most ground against the US dollar.

The Swiss franc’s index rating against the currencies of its main competitors fell 0.3 per cent in February to 150.0.

The fall against the US dollar was more pronounced, with a decline of 2.8 per cent, while the franc also gave up 0.5 per cent against the British pound.

But the currency has managed to increase in value against the Japanese Yen (up 1.3 per cent), while remaining essentially stable against the Euro (up 0.2 per cent).

The main concern of the Swiss National Bank is to maintain the franc’s stability against the Euro because the bulk of Switzerland’s trade is with countries, which have adopted the single currency.

But the cost of this policy means the franc has fallen in line with the Euro against other major currencies.

A weaker currency isn’t necessarily bad news for the economy, though. It makes Swiss exports cheaper abroad and may help boost the recovery.

But it does make foreign holidays and travel more expensive.

swissinfo and agencies