Swiss franc hits two-month high
The franc was also supported by Switzerland's annual inflation rate rising to 1.5% in October, its highest level in nearly three years. Although inflation remained within the Swiss National Bank's (SNB) target range of 0–2%, the acceleration strengthened market expectations of a potential interest rate hike in early 2027. With the SNB maintaining its policy rate at 0%, the possibility that investors could unwind carry trades previously used to invest in higher-yielding assets also contributed to increased demand for the franc.
The Swiss franc climbed to its highest level against the U.S. dollar in two months as the U.S. midterm election results weakened the dollar and boosted demand for safe-haven assets.
Early results indicating that Democrats were set to secure majorities in both chambers of the U.S. Congress triggered selling pressure on the dollar in global currency markets. Following these developments, the USD/CHF exchange rate fell to 0.81, pushing the Swiss franc to its strongest level since early September.
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