The USD/CHF currency pair dropped to near 0.8035 on June 25, 2025. This is the lowest point in over a decade. The decline happened because the US Dollar underperformed sharply.
This was especially true after Israel and Iran announced a ceasefire. The ceasefire significantly decreased demand for the USD as a safe-haven asset. Federal Reserve Chair Jerome Powell recently emphasized the need for more time.
He wants to understand how tariffs impact inflation and economic growth before making any monetary policy changes. At the same time, the Swiss National Bank (SNB) has continued to lower interest rates. They recently pushed rates to zero to try to boost inflation and economic activity.
During Asian trading hours on Wednesday, the USD/CHF saw a lot of selling pressure. This brought the pair to a new low of about 0.8034. The US Dollar Index (DXY) also seemed vulnerable.
It hovered near a weekly low around 98.00. This decline follows the broader market trend.
USD/CHF hits decade-low amidst ceasefire
The USD weakened significantly against various currencies, especially the New Zealand Dollar. The recent Israel-Iran ceasefire agreement reduced the USD’s safe-haven appeal. This made the USD’s decline worse.
Powell reiterated that the Fed is not inclined to make adjustments right now. The labor market is in a solid state. This shows the Fed is being cautious in dealing with how current tariff policies impact inflation.
The Swiss Franc has performed strongly against its peers except for antipodeans. Economic sentiment data has helped the Franc. In May, sentiment improved to -22 from -51.6 in April.
This reflects the positive impact of the SNB’s consistent interest rate cuts. Last week’s monetary policy announcement confirmed the SNB’s stance. Chairman Martin Schlegel hinted they may enter negative interest rate territory to combat low inflation.
These recent developments highlight the complex dynamics in the global foreign exchange markets. This is especially true amid geopolitical tensions and varying monetary policy stances.
