Swiss National Bank’s reported delay of rate cuts until late 2027 lifts the franc, pushing USD/CHF to August highs.
The USD/CHF pair climbed to its highest level since August 2025 after reports indicated the Swiss National Bank will maintain current interest rates through the end of 2027. The move follows a Bloomberg report suggesting the SNB’s cautious stance amid global policy shifts.
Prior to this, the franc had weakened broadly, with traders pricing in earlier rate cuts. The shift in expectations contrasts with the Federal Reserve’s anticipated steady rates, though dissenting votes for a hike remain possible at this week’s FOMC meeting.
Market reaction saw the dollar strengthen against the franc, extending its weekly gains despite broader USD softness earlier in the session. Geopolitical calm in the Middle East also contributed to reduced safe-haven demand.