Swiss Franc Holds Near Two-Week Low

2026-09-03 09:20 By Larissa Caser 1 min. read

The Swiss franc traded near $0.81, its lowest level since August 19th, amid growing inflation concerns that raised a hawkish sentiment.

Swiss inflation doubled in August while quarterly economic growth accelerated to its highest level in nearly five years, raising prospects of an earlier hike by the Swiss National Bank and reducing the franc’s appeal as a funding currency for carry trades.

Previously, A Swiss Bankers Association survey showed that all bankers expect the SNB to keep its policy rate at 0% by year-end.

Markets anticipated the first rate hike in June 2027, while most economists expect the first hike in early 2028.

Meanwhile, the US dollar was pressured by speculation of another intervention to support the yen.

In late July, the yen had appreciated after a US-Japanese intervention in the foreign exchange market, while a potential shift in short positions from the yen to the Swiss franc could provide an offsetting pressure, as traders seek alternative safe-haven currencies.



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Swiss Franc Holds Near Two-Week Low
The Swiss franc traded near $0.81, its lowest level since August 19th, amid growing inflation concerns that raised a hawkish sentiment. Swiss inflation doubled in August while quarterly economic growth accelerated to its highest level in nearly five years, raising prospects of an earlier hike by the Swiss National Bank and reducing the franc’s appeal as a funding currency for carry trades. Previously, A Swiss Bankers Association survey showed that all bankers expect the SNB to keep its policy rate at 0% by year-end. Markets anticipated the first rate hike in June 2027, while most economists expect the first hike in early 2028. Meanwhile, the US dollar was pressured by speculation of another intervention to support the yen. In late July, the yen had appreciated after a US-Japanese intervention in the foreign exchange market, while a potential shift in short positions from the yen to the Swiss franc could provide an offsetting pressure, as traders seek alternative safe-haven currencies.
2026-09-03
Swiss Franc Near Two-Week Low
The Swiss franc traded near $0.81, its lowest level since August 19th, as a more hawkish Fed outlook boosted demand for the greenback. Hawkish remarks by Fed Chair Warsh boosted markets expectations of September rate hike, supporting dollar-denominated assets. Meanwhile, a potential shift in short positions from the yen to the Swiss franc could put further downward pressure on the franc, as traders seek alternative safe-haven currencies amid recent US-Japanese efforts to support the yen. A Swiss Bankers Association survey showed that all bankers expect the SNB to keep its policy rate at 0% by year-end. Markets now anticipate the first rate hike in June 2027, later than the previous March expectation, while most economists expect the first hike in early 2028, potentially making the currency more attractive as a funding currency for carry trades.
2026-08-31
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 further weaken the currency, 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