Swiss franc most overvalued DM currency after surge?

The surge in the Swiss franc that followed the abandonment of the Swiss National Bank’s exchange rate ceiling against the euro means it is now the most overvalued of all the developed market (DM) currencies in terms of the deviation of the real effective exchange rate from its 10-year average, usurping the New Zealand dollar. However, we doubt whether much, if any, of this apparent overvaluation of the franc will unwind anytime soon.

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