An increase in economic growth and development projections by the central bank of Switzerland drove up the value of the nation's currency on Thursday against the common currency of the European Union, according to Bloomberg.
The Swiss franc also advanced against the world's reserve currency as a consequence of projections of 1 percent expansion for 2012. That doubles the Swiss National Bank's previous estimate of 0.5 percent, according to Reuters.
"The faster the euro zone economy gets back on its legs, the faster Switzerland will overcome the dent in growth," economist Joerg Zeuner with VP Bank told Reuters. "Exporters still wait in vain for a shift in the currency ceiling. Yet if the deflation pressure does not – as expected – abate over the summer months, the cries for an adjustment to the cap should gain force once again."
Bloomberg reports the value of the Swiss franc has fallen 3.8 percent during the past six months, which places the currency second only to the Japanese yen for worst-performing developed-nation monetary units.
The SNB's 0.5 percent economic growth forecast was issued in December, according to Reuters. The nation's government increased the growth forecasts for this year to 0.8 percent from 0.5 percent.