The Swiss franc reached a new record high against the euro on Friday, fueled by persistent worries about the global economy. Investors are increasingly seeking refuge in the perceived safety of the Swiss currency.

The euro fell to a new low of 1.0875 francs. The Swiss National Bank (SNB) has so far refrained from direct intervention in currency markets, despite the franc’s strength posing a threat to Swiss exports and the tourism sector.

Analysts suggest that the SNB may be hesitant to intervene aggressively due to concerns about fueling inflation. However, the central bank has repeatedly stated that it is monitoring the situation closely and is prepared to take action if necessary.

The franc’s appreciation has been a long-term trend, driven by Switzerland’s strong economy, political stability, and low debt levels. The Eurozone debt crisis has further exacerbated this trend, as investors seek alternatives to the euro.

The impact of the strong franc is being felt across the Swiss economy. Exporters are finding it more difficult to compete in international markets, while the tourism sector is struggling to attract visitors. Some companies have already announced job cuts as a result of the currency’s strength.

The SNB faces a difficult balancing act. It must try to prevent the franc from appreciating too much, while also maintaining price stability. The central bank’s next policy meeting will be closely watched for any signs of a change in its approach.