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Old 05.05.2007, 13:40
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Re: What's just happened to the Swiss Franc?

Hi,

The same thing is happening for me and my euros.

When the spread between interest rates in the UK and Switzerland decrease, the rate should return more towards previous (in your case, favourable) levels. Interest rates are so high now that institutions can borrow CHF at Swiss levels and and buy sterling to get paid at UK levels which drives up the price of Sterling. (Maybe you're aware of this, in which case I apologise for appearing condescending).

Now, when they will reduce interest rates is another question... Anyone?
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