Swiss Franc's Safe-Haven Appeal Fades as EUR/CHF Surges

The EUR/CHF exchange rate has reached its highest closing level since January at around 0.9304, near July's peak of 0.9315.

This represents a gain of 0.8% for the month and 1.3% in June, extending its recovery from the March low near 0.8981.

Despite this growth, EUR/CHF remains below the 12-month high around 0.9454 recorded in August 2025.

UBS believes that the Swiss Franc's traditional safe-haven appeal has faded since the opening phase of the Iran conflict, when EUR/CHF briefly fell below 0.90.

The bank attributes this decline to most major central banks responding to higher inflation with tighter policy, while the Swiss National Bank remained far from raising rates due to contained domestic inflation.