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UBS’s Rich Clients Seen Flocking to Dollars After Shock

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UBS Group AG, the largest Swiss bank, said its wealthiest clients will be attracted to U.S. dollars after Switzerland roiled markets by scrapping the franc’s cap.

Private-banking customers are concerned a stronger franc will hurt Switzerland’s economy and the businesses they own, Simon Smiles, Zurich-based chief investment officer for ultra-high-net-worth individuals at UBS, said on Friday in an interview. Clients worldwide have yet to decide on whether to change currency allocations, he said. The bank cut its growth forecast for Switzerland and predicts the country will slip into deflation this year.