Swiss Franc Steady Near Two-Week Low

2026-09-08 12:57 By Larissa Caser 1 min. read

The Swiss franc traded near $0.81, its lowest level since August 19th, amid inflation concerns.

Swiss inflation doubled in August as tensions in the Middle East persisted over the month, increasing inflation concerns amid higher global energy prices, although its effects are expected to be temporary as electricity prices will drop around 4% starting next year, weighing on inflation in the following months.

Meanwhile, quarterly economic growth was confirmed at 1.5%, its highest level in nearly five years, as a weaker swiss franc supported exports and helped lift the trade surplus to a record high, while a trade deal removing all tariffs on goods bound for China also provides support.

On the monetary policy front, 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.



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Swiss Franc Steady Near Two-Week Low
The Swiss franc traded near $0.81, its lowest level since August 19th, amid inflation concerns. Swiss inflation doubled in August as tensions in the Middle East persisted over the month, increasing inflation concerns amid higher global energy prices, although its effects are expected to be temporary as electricity prices will drop around 4% starting next year, weighing on inflation in the following months. Meanwhile, quarterly economic growth was confirmed at 1.5%, its highest level in nearly five years, as a weaker swiss franc supported exports and helped lift the trade surplus to a record high, while a trade deal removing all tariffs on goods bound for China also provides support. On the monetary policy front, 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.
2026-09-08
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. 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, speculation increased of further US-Japanese intervention in the foreign exchange market following a strenghened yen, while a potential shift in short positions from the yen to the Swiss franc could provide an offsetting pressure in the swiss currency, as traders seek alternative safe-haven currencies for carry trades.
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