Pursuits
Silent Scream of Swiss Franc Shows Distortion in Moderation
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Swiss exporters are being tortured as investors flee the euro region debt crisis for the haven of the franc’s fiscal virtue.
The franc has surged 42 percent since the start of 2008 against a basket of currencies of Switzerland’s main trading partners, after remaining little changed over the previous decade. With the Organization for Economic Cooperation and Development now calculating that the franc is the world’s most overvalued currency, the Swiss central bank yesterday unexpectedly cut interest rates to zero to dull its allure.