2026.01.2813:02:49UTC+00Swiss Franc Hovers at 10-Year High

In late January, the Swiss franc surged past the 0.77 mark against the US dollar, reaching its highest level in over ten years. This appreciation was primarily driven by a global shift towards safe-haven assets, as well as a retreat from other currencies traditionally viewed as safe, prompting investors to favor the franc as a reliable refuge. Uncertainty surrounding economic policies in the United States, combined with indications from the US Treasury pointing towards a deliberate strategy to weaken the dollar, led to its depreciation against G10 currencies. At the same time, Japanese authorities' promises of expansionary fiscal measures tempered foreign interest in the yen. In Switzerland, although the strengthening franc posed concerns given the already low inflation levels, speculation about a potential interest rate cut by the Swiss National Bank (SNB) remained limited. The SNB had already committed to restraining interventions aimed at weakening the franc. The central bank's policy rate has stayed at 0% for the past six months, with officials previously voicing their reluctance to return to a negative interest rate policy.