The Swiss franc (CHF) is experiencing a complex phase in the currency market, influenced significantly by recent economic developments and interventions from the Swiss National Bank (SNB). As of November 2025, the SNB has maintained its key interest rate at 0%, reflecting concerns about the adverse effects of new U.S. tariffs on Swiss exports, particularly in vital sectors like machinery and watchmaking. This decision highlights the challenges facing Switzerland's export-led economy, especially following a surprise 39% tariff on Swiss goods imposed by the U.S. in July, which severely impacted market confidence and triggered a slump in both the stock market and the franc itself.
In response to the currency's appreciation triggered by these tariffs, the SNB executed significant foreign currency purchases, amounting to 5.06 billion Swiss francs in the second quarter of 2025. This move aims to mitigate the franc's upward pressure, reflecting a proactive stance to stabilize the economy amidst heightened volatility. Analysts note that these actions suggest the SNB is keen on preventing what it perceives as an excessive strengthening of the franc, which could further harm Swiss exporters.
Moreover, a recent unexpected dip in Swiss inflation, falling to just 0.1% year-on-year in October 2025, has raised questions about the urgency for any monetary policy adjustments. Economists believe this lower inflation rate primarily results from decreased costs in key consumer sectors like food and transport, but it does not warrant immediate action from the central bank according to market experts.
In terms of exchange rate movements, the CHF to USD is currently trading at approximately 1.2457, reaching 7-day highs and remaining close to its 3-month average within a relatively stable range of 3.1%. Similarly, the CHF to EUR is positioned at 1.0742, aligning with its 3-month average, while the CHF to GBP trades slightly above its 3-month average at 0.9407. The CHF to JPY shows notable strength, sitting at around 194.5, which is 2.7% above its 3-month average—demonstrating a stable trading range indicative of the franc's perceived market status.
Currency analysts recommend close monitoring of further developments, especially in relations to international trade dynamics and upcoming SNB statements, as these factors will likely influence the CHF's trajectory in the near term. Keeping informed about these variables can assist both individuals and businesses in optimizing their foreign exchange strategies.
