Swiss Franc Gains Attention from Carry Traders Following Yen Intervention

Recent intervention by the US and Japan to support the yen has created an unexpected opportunity for Swiss exporters, who have long suffered from the strong Swiss franc.

The franc's value is currently about 12% higher against the euro than it was five years ago, due to Switzerland's stable current account surplus, sound public finances, low inflation, and demand for the currency as a safe-haven asset.

However, this has made Swiss goods less competitive abroad and restrained economic growth. The weakening of the franc could alleviate some of these pressures.