The Japanese stock market is inversely correlated with the Yen. When Yen goes up, Nikkei goes down and vice versa. This is because the Japanese economy is highly dependent on exports.

Does the same applies to the Swiss stock market and currency today?

For foreign investors, investing in a stock market which is inversely correlated with the currency is tricky. The investor can lose money overall despite making money in stocks because the stock gains were less than the currency depreciation.

  • 2
    Are you asking whether it has been, or whether it will be? Last results do not guarantee future performance; unless you know why a correlation appears to exist (or doesn't) you probably shouldn't be betting on it.
    – keshlam
    Commented Dec 23, 2016 at 2:51
  • I am asking about the condition today. It will be good to know about the past but I am not keen on any predictions on what will be. Nobody knows the future for sure while the past are facts.
    – curious
    Commented Dec 23, 2016 at 3:13

1 Answer 1


Roughly about 1 of 2 Swiss francs is won abroad. So, yes it is easier for Swiss companies to export when the Swiss franc is not "too high" as it has been those last years.

The main export market for Switzerland is the UE.

Some companies are doing most or all of their business on the Swiss market. Others are much more exposed to the the health of the global economy. When the Swiss franc appreciates, some companies suffer a lot from that and other less. It depends on their product portfolio, competitors, and other factors.

The last decades have shown that how the Swiss Franc valuation is less and less correlated with the performance of the Swiss economy. The Swiss franc is used as a safe haven when the global economy goes bad or is uncertain. In those times, the Swiss franc can be overevaluated, at least as compared to the purchasing power.

When the global economy is improving, the over-appreciation of the Swiss franc tends to disapear ; this is happening now (in Mid-2017).

As a summary, the Swiss franc itself is not truly correlated with the competitiveness of the Swiss economy, but more about how people in the world are anxious. In this regard, it behaves a little bit like gold.

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .