Switzerland is the latest country to express wishes to devalue its currency against the euro in what some analysts have warned could become a currency war.
This despite the Swiss franc’s recent slide against the euro resulting in its weakest level in 20 months.
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The franc has depreciated 3.2% against the euro this year but it is still 9.1% above its five-year average and 35% above the October 2007 low.
Uncertainty about the euro in connection with the Eurozone’s sovereign debt crisis has strengthened the franc because the currency is seen as more stable.
Increases in the currency’s value against the euro is beginning to affect employment.
A Swiss labor union has called for Switzerland’s central bank to issue a lock
against the exchange-rate cap but a pro-business group sees no need for such action at this point.