The recent economic developments surrounding the Swiss Franc (CHF) and the Singapore Dollar (SGD) indicate potential volatility in the CHF to SGD exchange rate. Analysts point out significant factors impacting the CHF, starting with Switzerland's economic slowdown, which registered a mere 0.1% growth in Q2 2025, driven largely by a hefty 39% tariff imposed by the U.S. on Swiss goods. This tariff, affecting around 35-40% of Swiss exports, adds pressure to an already fragile export-led economy.
The Swiss National Bank (SNB) has reacted to this challenging environment by cutting interest rates to 0%, with considerations for reintroducing negative rates if economic conditions worsen further. This marks a shift in monetary policy aimed at stimulating growth as the IMF downgraded Switzerland's GDP growth forecast for 2025 from 1.7% to 1.3%, attributing the revision to geopolitical tensions and trade uncertainties. In conjunction with deflationary trends in Switzerland, where the Consumer Price Index fell by 0.1% year-on-year, the overall market sentiment towards the CHF appears cautious.
On the other hand, the SGD has shown resilience amid its own set of challenges. The Monetary Authority of Singapore (MAS) eased monetary policy earlier in the year as a preventative measure against diminished demand linked to U.S. tariffs, although recent economic growth indicators of 1.4% for Q2 2025 strengthened the case for maintaining current monetary settings. While the SGD is currently feeling effects from bearish sentiment linked to the Chinese yuan, the overall outlook remains divided among economists regarding future policy adjustments.
The CHF to SGD exchange rate is currently at a 30-day high of 1.6049, slightly above its three-month average of 1.5922. This stability within a 3.2% trading range indicates cautious optimism, though fluctuating economic conditions for both currencies may introduce further volatility. As analysts continue to monitor these developments, it is advised for individuals and businesses engaging in international transactions to be attentive to the ongoing impacts of tariffs, inflation, and central bank policies on the CHF-SGD currency pair.
