0906 GMT - The Swiss franc would gain in the event of a widespread selloff in AI stocks, Capital Economics' Harry Chambers says in a note. "The bursting of the AI bubble that we suspect will happen next year, and the resulting pickup in safe-haven demand, would most likely cause the franc to appreciate against the euro," he says. The franc strengthened by around 3.5% against the euro in the dot-com bubble, the most obvious comparison to the current situation, Chambers says. Swiss National Bank intervention could only limit franc appreciation, rather than prevent it, he says. "We are forecasting the franc to remain around 0.94 francs per euro this year before strengthening by around 3% by the end of 2027," he says. The euro is last at 0.9330 francs.
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