The Swiss franc (CHF) is currently experiencing a complex interplay of factors that are shaping its value in the currency markets. Recent measures taken by the Swiss National Bank (SNB) include a significant increase in foreign currency purchases to 5.06 billion CHF in Q2 2025, marking its largest intervention in over three years. This response was driven by the notable appreciation of the CHF following the imposition of higher U.S. tariffs on Swiss exports, which have added pressure to the Swiss economy and caused volatility in the currency's value.
In terms of interest rates, the SNB is expected to maintain its policy rate at 0.00% through 2026, as indicated by a Reuters poll. This decision reflects steady inflation levels and aims to provide stability amid ongoing economic challenges, including minor deflation observed earlier this year, partly attributed to the strong CHF making imports cheaper.
The tariffs, specifically a 39% levy on Swiss firms announced in July 2025, have created a challenging environment for Swiss exporters, prompting some businesses to consider relocating operations to the U.S. to counteract rising costs. Analysts note that the currency's solid performance against major pairs primarily reflects these unsettling developments.
Currently, the CHF is trading at 1.2581 against the USD, just 0.6% above its three-month average, maintaining a stable range. The CHF to EUR is seen at 1.0827, 1.1% above its three-month average. Furthermore, the CHF is also achieving recent highs against both the GBP and JPY, at 0.9439 and 191.9 respectively, with gains of 1.5% and 3.3% above their respective average levels. These upward trends highlight the currency's relative strength in a context of ongoing market adjustments.
In light of these developments, the SNB has reiterated its commitment not to pursue competitive advantage through currency manipulation, focusing instead on ensuring appropriate monetary conditions. Looking ahead, currency forecasters will closely monitor how ongoing trade tensions, U.S. tariff impacts, and SNB policies will further affect the CHF's standing in the international marketplace.
