{"id":65743,"date":"2026-05-15T08:03:30","date_gmt":"2026-05-15T08:03:30","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/65743\/"},"modified":"2026-05-15T08:03:30","modified_gmt":"2026-05-15T08:03:30","slug":"francs-relentless-rise-alarms-swiss-companies-2","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/65743\/","title":{"rendered":"Franc\u2019s relentless rise alarms Swiss companies"},"content":{"rendered":"

\"money\"<\/p>\n

\u201cThe Swiss franc is a perpetual tariff for Swiss companies,\u201d said one financier. <\/p>\n

Keystone \/ Gaetan Bally <\/p>\n

The franc\u2019s relentless rise is \u201cundermining the competitiveness\u201d of Swiss exporters, trade groups have warned, as companies from Roche to Swatch warn on the hit from the currency\u2019s trade war rally.\n<\/p>\n

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February 16, 2026 – 09:43\n<\/p>\n

The franc has risen 3% this year, on top of a 14% gain last year, taking it to CHF0.77 to the dollar for the first time since its shock 2015 appreciation.<\/p>\n

The surge in the haven currency \u2013 driven by volatile geopolitics and a slide in the dollar \u2013 is ramping up the pressure on an economy where exports of goods and services add up to more than 70% of GDP.<\/p>\n

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\"FT\"<\/p>\n

Pharma company Roche and watch maker Swatch Group reported hits to 2025 sales of about 5% from the franc\u2019s appreciation, while Cartier owner Richemont has also flagged currency headwinds.<\/p>\n

Trade associations say the pain has been particularly acute for small and medium-sized companies that generate revenues abroad while incurring most of their costs at home.<\/p>\n

\u201cThe Swiss franc\u2019s appreciation against both the euro and the US dollar is increasingly undermining the competitiveness of Switzerland\u2019s machinery, electrical engineering and metals industry,\u201d said Nicola R. Tettamanti, president of Swissmechanic, which represents mechanical and electrical engineering SMEs.<\/p>\n

While productivity gains can offset currency moves in the short term, Tettamanti warned that \u201cthis challenge cannot be offset indefinitely\u201d. If current exchange-rate conditions persist, he said, they risk delaying investment decisions and, over time, weakening Switzerland\u2019s industrial base.<\/p>\n

Double whammy<\/p>\n

Similar concerns are emerging in the chemical and pharmaceutical sector, one of Switzerland\u2019s most important export engines. Roche, which generates most of its revenues outside the country, said it now expected a four percentage point hit this year.<\/p>\n

+ Swiss companies expect Swiss franc to remain strong<\/a><\/p>\n

Stephan Mumenthaler, director of scienceindustries, the chemical sector trade body, said the rise in cost pressures made it even more urgent to address the factors that Switzerland itself can influence, such as market access and innovation-friendly regulation.<\/p>\n

Swiss exporters have faced a double whammy of tariffs and currency strength over the past year. Switzerland and the US agreed in principle last year to cap additional US tariffs on Swiss exports at 15%, down from a rate of 39%, but the deal was set out in a framework understanding rather than a fully binding treaty.<\/p>\n

Officials on both sides are still negotiating the legal text, implementation and other details to turn that political agreement into a final, enforceable arrangement.<\/p>\n

The FX hit has restrained Swiss stock prices, investors say, with the benchmark Swiss Market Index\u2019s 2% rise this year trailing the 4% increase for the Stoxx Europe 600 index and 5% jump for London\u2019s FTSE 100 index. This continued a pattern of Swiss equity underperformance from last year.<\/p>\n

UBS estimates that for every 1% gain in the franc across currency pairs, listed Swiss companies suffer a profit hit of an average of 0.9%.<\/p>\n

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\"Franc<\/p>\n

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Workplace\n <\/p>\n

Swiss franc strengthens against dollar, but SNB unlikely to intervene <\/p>\n

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Jan 27, 2026 <\/p>\n

The Swiss franc continues to get stronger against the dollar, with a new high reported on Tuesday. But the Swiss National Bank (SNB) is unlikely to intervene, according to a financial expert. <\/p>\n

<\/p>\n

Read more: Swiss franc strengthens against dollar, but SNB unlikely to intervene
\n <\/a><\/p>\n

\u2018Perpetual tariff\u2019<\/p>\n

\u201cThe Swiss franc is a perpetual tariff for Swiss companies,\u201d said Cedric Jacque, partner at Zurich-based Lloyd Capital.<\/p>\n

A drop in valuations has led the asset manager to take bets on companies including dental implant manufacturer Straumann, construction and chemical group Sika and Swiss-Dutch chemical company DSM-Firmenich, leaving the firm with a record number of positions in Swiss stocks.<\/p>\n

The franc\u2019s surge has posed an increasing problem to the Swiss National Bank, which could cut rates to restrain the currency. However, as its benchmark interest rate stands at 0%, cutting would mean a return to negative rates, which policymakers have said they do not want to repeat.<\/p>\n

Swaps traders are putting a roughly 30% chance that the SNB will cut below zero this year.<\/p>\n

\u201cSwiss equities were among the worst-performing markets last year because of the strength of the Swiss franc and the weakness of European importers,\u201d said Charles-Henry Monchau, chief investment officer at Swiss bank Syz. \u201cWe need this to change, for sentiment to turn.\u201d<\/p>\n

Copyright The Financial Times Limited 2026<\/p>\n

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