US dollar in free fall: Swiss investors rely on security!

US dollar in free fall: Swiss investors rely on security!

The US dollar has lost significant value since the beginning of January 2023 and has fallen below the 80 centime mark against the Swiss franc for the first time in almost 15 years. Loud watson.ch The dollar has lost more than 12% of its strength during this time. This development has led to a cautious attitude among Swiss investors towards foreign investments, particularly in US stocks. Analysts warn that exchange rate risks can turn even positive stock returns into losses when converted into francs.

Another factor in the dollar's decline is perceptions of the currency. The dollar is considered overvalued, as evidenced by the Big Mac Index. While a Big Mac cost $7.99 in Switzerland at the beginning of the year, it was only $5.79 in the USA. In addition, inflation in the USA, which has been higher than in Switzerland for decades, is contributing to the devaluation of the dollar.

Uncertainties and challenges

Skepticism towards the dollar has increased, particularly following critical developments in US debt policy. A survey by Migros Bank shows that many Swiss are hesitant to invest their money in stocks, even though they offer long-term return potential. Swiss savers are cautious in the current market situation, which is definitely considered sensible.

The devaluation of the US dollar has been exacerbated by several factors since the beginning of 2025. Loud hauptcheck.de Aggressive trade tariffs under President Trump, economic concerns about the growth of the US economy and increasing discomfort among non-American investors with US financial policy are major reasons for this sell-off. The US dollar index has fallen about 7.5% since the start of the year, highlighting the uncertainty in the markets.

Market impact and forecasts

The dollar's forecasts suggest that the bearish trend could continue and potentially intensify, especially given the current global market turmoil. Analysts at Goldman Sachs have made a clear forecast: a continued weak dollar could have a positive impact on export-oriented companies, while import-dependent industries will suffer from higher costs for imported goods.

However, in the long term, the US dollar remains the most important reserve currency for central banks and companies worldwide. However, further declines could occur if economic or political risks increase or if international investor involvement in the US declines. In summary, the complexity of the causes of the dollar's weakness will have significant implications for international capital flows and stock markets.