Swiss Franc Faces Persistent Pressure Amid Funding Demand

The Swiss Franc (CHF) is facing continued pressure as demand for funding grows and recent intervention by the Japanese Yen (JPY) reinforces its role as a preferred currency.

According to OCBC's Sim Moh Siong and Christopher Wong, this trend is expected to persist through year-end and potentially into 2027, due in part to the Swiss National Bank's (SNB) comfort with a weaker currency.

The CHF has been the worst-performing G10 currency against the US Dollar so far in the third quarter of 2026, and the SNB's policy rate is likely to remain at zero for the remainder of this year.

This outlook is supported by a recent press report suggesting the SNB expects to keep policy rates at zero until the end of 2027, although such reporting is unusual.