Swiss economic recovery may leave currency cap redundant

The Swiss economy is showing signs of further recovery this year, according to the government, with the outlook for 2013 upgraded to become even more positive thanks to strong domestic demand and improving European conditions.

The promising signs have only been held back by the country’s strong franc, which continues to slow down exports to countries with the weaker euro. Indeed, there is now a cap on the safe-haven currency of 1.20 per euro. Nonetheless, though, as the global economy recovers, the cap may prove “unneeded”, reports Alternative Investor Portfolio.