Swiss Franc Shifts from Safe Haven to Funding Currency Status?

Rabobank's Senior FX Strategist Jane Foley suggests that the Swiss Franc (CHF) may be shifting from its traditional safe-haven status to a funding currency role. The CHF has been underperforming in G10, and its safe-haven appeal has diminished since the SNB intervened in March 2026 to halt a surge in the value of the CHF during the Iran war.

The Swiss National Bank (SNB) policy rate is currently at zero, which raises the prospect that the CHF could adopt funding currency status. However, Foley notes that the market would have to square this with the possibility that the CHF could see a surge in long positions if market anxieties rise.

Foley also highlights the upcoming French Presidential election and the potential for increased Eurozone political risks, which could still trigger safe-haven inflows into the CHF. If this happens, it would be a risk that many market participants may be wary about.