Swiss Franc Hovers at 10-Year High

2026-01-28 13:02 By Andre Joaquim 1 min. read

The Swiss franc appreciated past the 0.77 per USD mark in late January, the strongest in over one decade, as a global pivot toward safe assets in combination with aversion toward other currencies that are commonly seen as safe drove markets to pile on the franc as a reliable haven.

A combination of economic policy uncertainty in the US and their Treasury's signal that it will purposefully target a weaker dollar drove the greenback to weaken against G10 currencies, while pledges of expansionary fiscal policy by Japanese officials limited foreign demand for the yen.

Despite its negative impact on an already muted inflation backdrop in Switzerland, bets of a rate cut by the SNB were limited, and the central bank had already pledged to limit intervention to weaken the franc.

The SNB's policy rate has remained at 0% for six months, and central bankers previously expressed reservations in returning to a negative interest rate policy.



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