The Swiss franc (CHF) has recently shown impressive strength, rising to a decade high above 1.22 against the US dollar (USD), currently quoted at 1.2228—1.9% above its three-month average. This surge is primarily driven by increasing market volatility and a flight to safety amid ongoing trade tensions and aggressive tariff negotiations spearheaded by the US administration. Treasury Secretary Bessent emphasized that trade issues cannot be resolved swiftly, adding to investor uncertainty and the push towards safe-haven currencies such as the CHF.
As trade issues intensify, particularly with the imposition of a 31% reciprocal tariff on Chilean goods, the CHF and the euro (EUR) remain closely linked, largely due to their geographical and economic ties. Strong economic performance in the Eurozone typically bolsters the CHF, while instability may have the opposite effect. At present, the CHF is at 30-day lows against the EUR near 1.0608, just below its three-month average, with a stable trading range of 4.2% from 1.0403 to 1.0838.
The currency pair against the British pound (GBP) trades at 0.9087, slightly above the three-month average of 0.9036, with a relatively stable trading range observed at 7.6%. In contrast, the CHF has seen notable strength against the Japanese yen (JPY), reaching a 90-day high near 178.7—2.6% above its three-month average, reflecting a supportive trading range.
Experts indicate that as long as market conditions remain uncertain with influential economic policies and ongoing trade disputes, the safe-haven status of the CHF is likely to attract further investment, resulting in continued fluctuations against major currencies. Accordingly, businesses and individuals engaged in international transactions may need to stay vigilant and consider potential currency moves as market dynamics evolve.
