The Swiss franc has soared to its strongest position against the dollar since 2015, marking a significant milestone after Switzerland's central bank shifted away from its policy of curbing

currency strength.

Reaching CHF0.8551 per dollar last Friday, the currency hit its most robust point in nearly nine years. Against the euro, the franc also surged to a high of CHF0.94112.

What's on the Horizon for Switzerland's Economy?

Outstripping its G10 currency counterparts, the franc's impressive performance this year is underpinned by confidence in the Swiss National Bank's (SNB) preference for a stronger domestic currency, which is expected to provide stability.

While the central bank recently affirmed its readiness to intervene in currency markets, it clarified that foreign currency operations might now encompass both buying and selling, a shift from the previous focus on selling since mid-2022 aimed at curbing inflation risks.

Swiss inflation has remained within the central bank's targeted range of 0 to 2% since June, supporting its decision to maintain unchanged rates since the last hike during its quarterly meeting in June.

With the economy showing signs of slowing down, market expectations indicate a potential start for rate cuts by the SNB in March. Photo by MadGeographer, Wikimedia commons.