The surging Swiss franc and its impact on watch industry

Marina Milojević | 08.01.11 | 12:06 PM

Daniel Dreifuss from Maurice de Mauriac watches explains the possible consequences of the surging Swiss franc and its impact on exports.

The Swiss franc surged to records against the euro and dollar after the most recent data showed the world’s biggest economy grew less than forecast in the second quarter. The United States gross domestic product rose at a 1.3 % annual rate following a 0.4 % gain in the prior quarter, which is much less than previously estimated.

“The Swiss franc continues to be a favorite against other currencies, with strong liquidity and low government debt.” said Derek Halpenny, European head of currency research at Bank of Tokyo-Mitsubishi UFJ Ltd, in an interview with Bloomberg. Switzerland’s currency has surged 3.6 percent against the euro this week and strengthened to records against the dollar. Bloomberg's reporter Elliott Gotkine discusses the Swiss franc's surge against the euro and explains the impacts it might have on an export-dependent economy.

Franc's Surge Versus Euro, Dollar Hampers Swiss... by Bloomberg