Curse of Swiss Franc’s Rally Seen Extending Beyond Greek Endgame
The gains are generally bad news for the economy, pushing Switzerland to the brink of its first recession in six years and causing the sharpest drop in consumer prices in the developed world.
Photographer: Philipp Schmidli/BloombergThis article is for subscribers only.
It’s going to take more than a resolution of the Greek crisis to free Switzerland from an overvalued currency that’s pushing it toward a recession, according to Europe’s biggest bank.
HSBC Holdings Plc says investors seeking a haven from the faltering global recovery will keep being attracted by the relative stability of the franc, even if Greece pulls back from the brink of default. The franc is the best performing major currency against the euro this year, and options prices suggest traders expect a repeat performance in the second half.