Brexit Fears Put Franc Under Further Pressure

Brexit Fears Put Franc Under Further Pressure by Matthew Allen, SwissInfo.ch

The spectre of Britain leaving the European Union next week continues to haunt the franc. The Swiss currency strengthened on Wednesday, with a euro buying CHF1.079 – the first time the exchange rate has fallen below CHF1.08 since December.

“Brexit is the big elephant in the room,” Bank Sarasin chief economist Karsten Junius told swissinfo.ch. “Everyone is getting scared and that is putting more pressure on the safe haven franc.”

The latest opinion polls in Britain show the referendum on June 23 as too close to call, which is spooking many investors into positions of greater safety. With the British pound and the euro expected to take a battering...