Swiss franc will keep on climbing

The Swiss franc has reached record highs against both the dollar and the euro, having appreciated by almost 10% against the greenback in this quarter alone. You can see why it's so popular, says Fxpro.com's Michael Derks.

The dollar and the pound have been "deliberately debased" by their respective central banks through money printing. They "no longer represent a sound store of value". The appeal of the yen has been dented now that the economy is struggling with the aftermath of March's earthquake.

Worries over southern European states' solvency and a possible break-up of the eurozone make Switzerland's currency "the first port of call" for rattled eurozone investors, says Standard Bank's Steve Barrow.

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A current-account surplus and solid public finances are also buoying the franc, while the comparatively strong economy makes further interest-rate rises likely. "The Swiss franc has all the right characteristics" to appeal to foreign-exchange investors, says Kasper Kirkegaard of Danske Bank.

"It is difficult to see," agrees Derks, what will stop the currency rising further in the near term.