Swiss Franc Trades Near One-Year Low Amid Global Tensions

The Swiss franc has been trading near its one-year low against the US dollar, hovering around $0.82 as tensions in the Middle East persist and investors remain cautious.

According to economists, the Swiss National Bank is expected to keep its policy rate at 0% through 2027, with a contingency plan for negative interest rates if needed, citing no severe damage to Swiss banks.

Despite this, currency markets are pricing in an increase in the SNB rate by March next year, earlier than most economists expect, who forecast the first hike in early 2028.