Swiss Franc Sinks to 16-Month Low Amid Wider US-Switzerland Rate Gap

The Swiss franc has fallen to its weakest level against the U.S. dollar in 16 months as a widening return gap pulls capital toward dollar assets.

USD/CHF reached 0.8358 on September 30, a sixth straight session of gains and a rally of close to 4% since late August.

The move followed the Federal Reserve’s first rate increase since 2023 on September 16, eight days before the Swiss National Bank held its policy rate at 0%

The U.S. 10-year Treasury yields near 5.29%, the highest since the first half of 2007, have widened the dollar’s advantage.