Swiss Franc Weakens by Design, USD/CHF Hits Year High

The Swiss Franc posted the worst performance among major currencies ahead of the weekly close, pushing USD/CHF to a new high for the year. The surface-level explanation points to a unwinding of wartime safe-haven flows following a reported agreement between the US and Iran. However, the Franc was never a strong safe haven during this conflict, and the current weakness appears engineered rather than peace-driven.

The Swiss National Bank's long-standing policy of intervention to weaken the Franc likely played a larger role. The move suggests deliberate action by the SNB to keep the currency soft, rather than a genuine shift in geopolitical risk sentiment.