The Swiss franc falls as rising U.S. yields eclipse stronger growth in Switzerland

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At the time of writing, USD/CHF was trading around 0.7870 on Tuesday, gaining 0.35% on the day as the US dollar (USD) gains renewed support amid expectations for a more hawkish monetary policy stance in the United States (US).

Markets are currently reassessing the US monetary outlook as Treasury yields soar. At press time, the benchmark 10-year U.S. Treasury yield rose to 4.613%, near its highest level since February 2025. The move reflects investor concerns that rising energy prices could weigh on inflation and potentially prompt the U.S. central bank to respond more aggressively.

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The US dollar is also supported by rising expectations that the Federal Reserve (Fed) may maintain its restrictive stance for longer. According to CME’s FedWatch tool, markets have now completely ruled out rate cuts for the remainder of the year and are pricing in a 38% chance of a 25 basis point rate hike at the December meeting.

Reuters also cited comments from Lou Brien, market strategist at DRW Trading, who said recent market moves reflect investor uncertainty about how Fed Chairman Kevin Warsh will deal with persistent inflation. According to Brien, Wall Street is looking for assurances that the central bank will remain independent in making policy decisions.

On the geopolitical front, US President Donald Trump’s announcement to delay a potential military attack on Iran slightly improved market sentiment. Investors remain cautious, however, as diplomatic discussions remain uncertain and significant disagreements remain over Iran’s nuclear program and the Strait of Hormuz.

In Switzerland, preliminary data showed that the economy grew by 0.5% q-o-q in the first quarter, after growing by 0.2% in the previous quarter. This means the country’s best quarterly result in a year and confirms the gradual recovery of economic activity. Despite this improvement, the Swiss franc (CHF) is struggling to benefit from positive data amid stronger support currently driving the US dollar.

Today’s price of the Swiss franc

The table below shows the current percentage change of the Swiss Franc (CHF) against the main listed currencies. The Swiss franc was strongest against the Australian dollar.

USD EUR GBP JPY BOOR AUD NZD CHF
USD 0.32% 0.22% 0.14% 0.17% 0.75% 0.57% 0.34%
EUR -0.32% -0.09% -0.15% -0.14% 0.44% 0.27% 0.03%
GBP -0.22% 0.09% -0.04% -0.04% 0.52% 0.36% 0.13%
JPY -0.14% 0.15% 0.04% 0.00% 0.57% 0.42% 0.18%
BOOR -0.17% 0.14% 0.04% -0.00% 0.57% 0.41% 0.17%
AUD -0.75% -0.44% -0.52% -0.57% -0.57% -0.15% -0.41%
NZD -0.57% -0.27% -0.36% -0.42% -0.41% 0.15% -0.24%
CHF -0.34% -0.03% -0.13% -0.18% -0.17% 0.41% 0.24%

The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select Swiss Franc from the left column and move along the horizontal line to US Dollar, the percentage change displayed in the box will represent CHF (base)/USD (quote).

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