LONDON, Feb 21 Reuters Investors have been pouring cash into Swiss stocks in the hope that this exportfocussed market will outshine its peers, in part thanks to a shift in central bank policy that could knock the franc further off 202339;s multiyear highs.

Analysts say this quarter will probably remain tough for exporters with the franc still trading at elevated levels, but expectations this might change soon are already setting the tone for the market.

Swissdomiciled funds recorded their largest monthly net inflow since July 2022 last month, and positive net flows for the last three months, according Morningstar Direct data.

The main Swiss index SMI also caught up with Europe39;s STOXX 600 index with both up 2 so far this year after it rose just 3.8 last year, lagging a 12.7 gain for the European benchmark.

Currency strength was part of the problem, as many large Swiss firms make much of their revenues abroad, but report earnings and pay some costs in francs, meaning their overseas revenues shrink after being converted.

Currency moves accounted for almost 25 of the SMI39;s relative performance in the past 10 years, according to analysts at Kepler Cheuvreux. This was particularly acute last year, when the franc hit its strongest since 2015 against the euro and the dollar. , . The franc is the only major currency that outperformed the U.S. dollar through the last two years.

Companies including pharmaceuticals giant Roche and watchmaker Swatch, cited the currency as…