Swiss Franc Weakens Further

2026-08-28 16:24 By Larissa Caser 1 min. read

The Swiss franc weakened toward $0.81, its lowest level since August 19th, as a more hawkish Fed outlook boosted demand for the greenback.

Fed Chairman Warsh said that if inflation wasn't returning to target, they “would have work to do,” increasing expectations of a September rate hike and supporting dollar-denominated assets.

Meanwhile, a potential shift in short positions from the yen toward the Swiss franc could provide an offsetting pressure, as traders move short positions in the yen into other relatively weaker safe-haven currencies amid recent US-Japanese efforts to strengthen the yen.

The SNB kept its policy rate at 0% and is expected to remain unchanged throughout 2027, while reiterating its preference for foreign exchange intervention to prevent excessive franc appreciation.

Most economists expect the first rate hike in early 2028, while markets are pricing in one as early as March 2027, potentially making the currency more attractive as a funding currency for carry trades.



News Stream
Swiss Franc Weakens Further
The Swiss franc weakened toward $0.81, its lowest level since August 19th, as a more hawkish Fed outlook boosted demand for the greenback. Fed Chairman Warsh said that if inflation wasn't returning to target, they “would have work to do,” increasing expectations of a September rate hike and supporting dollar-denominated assets. Meanwhile, a potential shift in short positions from the yen toward the Swiss franc could provide an offsetting pressure, as traders move short positions in the yen into other relatively weaker safe-haven currencies amid recent US-Japanese efforts to strengthen the yen. The SNB kept its policy rate at 0% and is expected to remain unchanged throughout 2027, while reiterating its preference for foreign exchange intervention to prevent excessive franc appreciation. Most economists expect the first rate hike in early 2028, while markets are pricing in one as early as March 2027, potentially making the currency more attractive as a funding currency for carry trades.
2026-08-28
Swiss Franc Eases From Two-Month High
The Swiss franc weakened to around $0.805, after reaching its highest level in two months, amid shifting foreign exchange dynamics. Elevated US inflation data prompted markets to increase bets of a Fed rate hike by year-end, increasing demand for dollar-denominated assets and weakening demand for the Swiss franc. Meanwhile, a potential shift in short positions from the yen toward the Swiss franc could provide an offsetting pressure, as traders move short positions in the yen into other relatively weaker safe-haven currencies amid recent US-Japanese efforts to strengthen the yen. The SNB kept its policy rate at 0% and is expected to remain unchanged throughout 2027, while reiterating its preference for foreign exchange intervention to prevent excessive franc appreciation. Most economists expect the first rate hike in early 2028, while markets are pricing in one as early as March 2027, potentially making the currency more attractive as a funding currency for carry trades.
2026-08-27
Swiss Franc Strengthens to Two-Month High
The Swiss franc strengthened to around $0.798, its highest level in two months, amid shifting foreign exchange dynamics. The US Treasury announced plans to increase its bond buyback operations to help contain borrowing costs, which had risen to multi-month highs, weighing on demand for the US dollar and supporting the franc. Meanwhile, a potential shift in short positions from the yen toward the Swiss franc could provide an offsetting pressure, as traders move short positions in the yen into other relatively weaker safe-haven currencies amid recent US-Japanese efforts to strengthen the yen. The SNB kept its policy rate at 0% and is expected to remain unchanged throughout 2027, while reiterating its preference for foreign exchange intervention to prevent excessive franc appreciation. Most economists expect the first rate hike in early 2028, while markets are pricing in one as early as March 2027, potentially making the currency more attractive as a funding currency for carry trades.
2026-08-20