The Swiss franc weakened against the U.S. dollar, with USD/CHF rising to a session high as the greenback steadied on expectations that the Federal Reserve may keep interest rates higher for longer. Petra Tschudin, a member of the Swiss National Bank’s Governing Board, said the franc’s recent weakness is driven primarily by higher interest-rate expectations abroad rather than domestic conditions. The SNB kept its policy rate at 0% at its June 2026 monetary policy assessment and reiterated that negative rates remain available if needed, alongside foreign-exchange intervention. Higher expected foreign rates widen the yield gap between Swiss assets and overseas alternatives, reducing the franc’s appeal. The franc’s depreciation since March 2026 had itself loosened monetary conditions in Switzerland, while a weaker currency can support Swiss exporters. The SNB remains prepared to act against rapid or excessive moves in either direction, particularly franc appreciation that could push inflation lower and hurt exporters. It forecasts average inflation of 0.6% in 2026 and 2027 and 0.7% in 2028, within its definition of price stability as annual CPI growth below 2%. Traders are watching SNB communications and U.S. economic data for the next direction in the currency pair.