Swiss franc soars after cap against euro ends

Switzerland’s companies warned of a plunge in exports, tourist revenues and profits after the country’s central bank scrapped its cap on the Swiss franc, sending the currency soaring up to 30% and crushing their competitiveness in world markets.

Analysts said the country’s renowned watchmakers and luxury goods companies, including Swatch and Richemont, were likely to be the biggest casualties, with the starkest mismatch between revenues abroad and costs at home.

Other Swiss blue-chips, such as food group Nestle, engineer ABB and drugs firms Novartis and Roche, would be better protected by their operations in local markets globally, they said.