Swiss Franc Hits 16-Month Low Amid Widening Interest Rate Differential

The Swiss franc has reached a 16-month low against the US dollar, trading at over 0.83 per USD.

This decline is attributed to the widening interest rate differential with other major economies.

The Swiss National Bank (SNB) maintained its key rate unchanged at 0% in September, adopting a cautious stance and scaling back its threat of intervention to prevent excessive currency appreciation.

Certain analysts believe that expectations of a rate hike by the end of this year and roughly three hikes by 2027 are overdone.