Soaring franc puts Swiss companies under pressure

Major companies favoured by leading European fund managers are facing severe price pressures as the global flight to safety propelled the Swiss franc to new heights today.

The Swiss National Bank warned last week the outlook for the Swiss economy had “deteriorated substantially” due to the strength of the Swiss franc, but its attempt to intervene and weaken the currency was neutered by the market’s search for safe havens. The franc, which has risen 20% against the dollar since mid-February alone, rose again today in the wake of the move by Standard & Poor's to cut the US credit rating. By early afternoon, one dollar was worth 76.25 centimes, having hit a record 74.85 centimes earlier, according to Bloomberg. Currency appreciation has provided an addi...