Exchange Rate Calculator

The exchange rate between the Swiss Franc (CHF) and the US Dollar (USD) has experienced notable fluctuations over the past few months, influenced by various economic factors and monetary policies from both Switzerland and the United States.

Recent Exchange Rate Trends

As of March 7, 2025, the CHF/USD exchange rate stood at 1.140, indicating that one Swiss Franc was equivalent to 1.140 US Dollars. This reflects a slight increase from the previous day's rate of 1.131 and a marginal rise from 1.139 recorded a year earlier.

In the first quarter of 2025, the exchange rate exhibited a gradual upward trend. For instance, on January 31, 2025, the rate was 1.0987, and by March 20, 2025, it had risen to 1.133.

Factors Influencing the Exchange Rate

Several key factors have contributed to the recent movements in the CHF/USD exchange rate:

Monetary Policies:

• Swiss National Bank (SNB): On March 21, 2025, the SNB reduced its benchmark interest rate by 25 basis points to 1.5%. This decision was influenced by successful inflation containment over the preceding two and a half years, suggesting potential for further rate cuts.

• Federal Reserve (Fed): The Fed has maintained a relatively accommodative stance, with market expectations anticipating three rate cuts, as inferred from the CME Group’s FedWatch Tool. The Personal Consumption Expenditures Price Index (PCE) recorded a 2.8% year-on-year increase in February, aligning with market forecasts and indicating a potential pause in the Fed’s tightening cycle.

Safe-Haven Demand:

The Swiss Franc is traditionally viewed as a safe-haven currency. Recent geopolitical tensions and economic uncertainties have led investors to seek refuge in the CHF, contributing to its appreciation against the USD.

Economic Indicators:

• Switzerland: Inflation in Switzerland has dropped to a five-month low, fueling speculation about another rate cut by the SNB. The SNB recently lowered its policy rate by 25 basis points to 1.25% in June 2024, aligning with market expectations due to falling inflation and the strong performance of the Swiss Franc.

• United States: The PCE Price Index, the Fed’s preferred gauge of inflation, recorded a 2.8% year-on-year increase in February, matching market forecasts and indicating a potential pause in the Fed’s tightening cycle.

Forecasts and Future Outlook

Looking ahead, the CHF/USD exchange rate is expected to experience modest fluctuations. In one month, the exchange rate is forecasted to rise to 1.1392, a 0.34% increase from the current rate of 1.1353. In four months, it is projected to reach 1.1398, and in seven months, 1.1428. However, in ten months, the rate is expected to slightly decrease to 1.1323.

These projections suggest a relatively stable exchange rate in the near term, with minor fluctuations influenced by ongoing monetary policies and economic indicators from both countries.

Conclusion

The CHF/USD exchange rate has been influenced by a combination of monetary policy decisions, economic indicators, and global investor sentiment. While the Swiss Franc has appreciated against the US Dollar due to its safe-haven status and the SNB's monetary policies, the future trajectory of the exchange rate will depend on forthcoming economic data and policy decisions from both the SNB and the Fed.