The Swiss franc strengthened to around $0.798, its highest level in two months, as plans by the U.S. Treasury to expand bond buybacks helped contain borrowing costs that had reached multi-month highs, reducing demand for the U.S. dollar. The franc could face countervailing pressure if traders shift short positions from the yen into other relatively weaker safe-haven currencies, amid recent U.S.-Japanese efforts to strengthen the yen. The Swiss National Bank, or SNB (Swiss central bank), held its policy rate at 0% and reiterated its preference for foreign-exchange intervention to prevent excessive franc appreciation. The rate is expected to remain unchanged through 2027. Most economists anticipate a first hike in early 2028, although markets are pricing one as early as March 2027, potentially increasing the franc's appeal as a funding currency for carry trades, which seek to profit from interest-rate differences.