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Tags: Swiss | franc | Americans | dollar

Swiss Franc's Impact on Americans: More Expensive Trips, Rising Stocks

By    |   Friday, 16 January 2015 10:39 AM EST

The Swiss National Bank's decision Thursday to drop its three-year ceiling for the franc against the euro had its biggest impact on global financial markets.

But there are also some effects on Americans. The dollar has dropped 15 percent against the franc since the central bank's move — to 0.8627 franc from 1.0187 francs.

That means Swiss goods exported to the United States now cost 15 percent more. So get ready to pay up for your Swiss watches and chocolates.

It also means that if you're planning a trip to Switzerland, whatever you will pay for in Swiss francs — basically everything but airfare — just got 15 percent more expensive.

But there is a plus side, Swiss stocks plunged 8.7 percent Thursday and dropped another 4.2 percent so far Friday. That's bad news for most investors holding those stocks — but not for Americans. The U.S.-listed shares of Swiss companies have risen, because they are priced in dollars, and the franc's rise makes those shares worth more in dollar terms. For example, drug titan Novartis has jumped 3.3 percent since Wednesday.

On the tourism side, a U.S. visitor to Zurich would now fork over $8.30 for a cup of coffee, according to the Daily Mail. Perhaps you'd prefer to stay home and go on a splurge at Starbucks.

Meanwhile, a McDonald's Big Mac now costs 128 percent more in Switzerland than in the United States. Americans probably don't travel to Switzerland to eat at McDonald's, but if your bucket list includes eating at a McDonald's in every country, you might want to put off the Switzerland leg of your tour.

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Finance
The Swiss National Bank's decision Thursday to drop its three-year ceiling for the franc against the euro had its biggest impact on global financial markets.
Swiss, franc, Americans, dollar
268
2015-39-16
Friday, 16 January 2015 10:39 AM
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