The Swiss franc is trading at its highest level in 11 years against the U.S. dollar as currency markets shift.
The rise of the Swiss franc comes as investors seek out safe haven assets and pile money into gold, silver, and the currency of Switzerland.
The Swiss franc has gained 3.5% against the U.S. dollar so far this year, driven higher amid unpredictable U.S. policies that are raising concerns globally.
The American dollar, commonly known as the greenback, is currently at a four-year low, having declined about 10% during 2025.
Worries about the independence of the U.S. Federal Reserve, and the threat of American military attacks in Greenland and the Middle East are weighing on the world’s reserve currency.
The Swiss franc, which is widely viewed as the world’s most stable currency, gained 13% against the U.S. dollar in 2025. It’s now at an 11-year high against the American currency.
Some policymakers in Switzerland are raising concerns about the franc’s rise, saying it makes Swiss exports less attractive and complicates monetary policy at the Swiss central bank.
Switzerland is currently grappling with sluggish price growth and a stronger currency could add further disinflationary pressure to the country’s export-driven economy.
With Switzerland’s inflation rate at just 0.1% and the Swiss National Bank’s key interest rate at 0%, the country is on the verge of disinflation and negative interest rates.
In 2022, the Swiss National Bank ended seven years of negative interest rates, which are unpopular with savers and lenders as they eliminate returns on deposits and hurt banks’ profitability.
As for the administration of U.S. President Donald Trump, it has blamed the rise of the Swiss franc against the U.S. dollar on “currency manipulation.”
In 2025, Switzerland secured a trade deal with the U.S. that reduced a 39% tariff rate down to 15% for the European nation.
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