The Swiss franc (CHF) has shown significant strength in recent weeks, rising above 1.22 against the US dollar (USD) for the first time in a decade. Analysts attribute this surge to safe-haven buying as trade tensions between the US and various countries escalate, particularly in light of the recently imposed 31% reciprocal tariff on Chilean goods. The lack of clarity from US officials regarding any potential easing of tariffs has further fueled investor demand for the CHF.
Current market data indicates the CHF to USD exchange rate is 1.2571, which is 2.4% above its three-month average of 1.228. The pair has traded within a relatively stable range of 1.1827 to 1.2641 over this period. As global uncertainty persists, the CHF remains a preferred choice for risk-averse investors.
The relationship between the CHF and euro (EUR) is also noteworthy, with the CHF trading at 14-day lows near 1.0702 against the EUR, maintaining its three-month average. In contrast to the recent strength against the USD, the CHF has exhibited stability against the EUR within a 1.4% range of 1.0598 to 1.0751.
Furthermore, the CHF has climbed to 90-day highs against the British pound (GBP), trading at 0.9362, which is 2.7% above its three-month average of 0.9115. This upward movement is supported by a steady trading range of 0.8948 to 0.9362.
The strength of the CHF is also observable against the Japanese yen (JPY), with the exchange rate at 185.5, representing a 4.0% increase above its three-month average of 178.3, reflecting a trading range of 172.8 to 185.8.
Overall, the CHF’s performance is underpinned by ongoing economic uncertainties and tariff implications, with strong demand for the currency likely to continue as long as these conditions persist. Investors and businesses engaged in international transactions should be mindful of these trends and consider them for optimizing their currency exposures.
