Swiss franc's surge on tariff turmoil pressures SNB to act

John Revill - Reuters - 07:41
The Swiss franc's rapid appreciation on U.S. policy uncertainty could force the Swiss National Bank to intervene soon, as Swiss industry hopes the safe haven currency's surge can be tamed before it deals another blow to a tariff-threatened sector.
  • Swiss franc up 9% vs USD in April, set for best month since 2008
  • Spotlight on SNB to act to tame franc surge
  • Intervention probably SNB's best tool, analysts say
  • SNB has said it could return to negative rates
ZURICH, April 23 (Reuters) - The Swiss franc's rapid appreciation on U.S. policy uncertainty could force the Swiss National Bank to intervene soon, as Swiss industry hopes the safe haven currency's surge can be tamed before it deals another blow to a tariff-threatened sector.
The franc has surged roughly 9% against the dollar so far this month, and is set for the biggest monthly gain since the 2008 financial crisis. Last week it hit its strongest level since January 2015 when the SNB scrapped its minimum exchange rate .

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That has pulled the franc, also known as the Swissie, up 2.6% against the euro in April, taking it close to its strongest level in more than 10 years .
Turbulence in U.S. markets has boosted the safe-haven Swiss franc.
But the rush into the franc, spurred by concerns about U.S. President Donald Trump's trade policy gyrations, puts the SNB's 0-2% inflation target at risk by depressing the cost of imports at a time when inflation is already near zero.
It also hurts Swiss exporters potentially facing 31% U.S. tariffs by making their goods dearer abroad.
"The rise of the Swiss franc is the final ingredient for a poisonous cocktail for Swiss industry," said Jean-Philippe Kohl, vice director of industry association Swissmem.
"Companies are already struggling with weak demand abroad, the threat of massive American tariffs on Switzerland, and uncertainty caused by President Trump's trade policy."
Swissmem refrained from demanding SNB action, but would welcome any moves by the...
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