Illustrative file photo: Zurich and the Limmat viewed from Quaibrücke, July 2020. Photo: Daniel Kraft via Wikimedia Commons. CC BY SA 3.0. Image previews may be cropped or resized. The photograph remains under the same license.

The current policy contrast

The Swiss National Bank left its policy rate at 0% on September 24, 2026. The ECB’s deposit rate stood at 2.50% following its September increase. The SNB also reiterated its willingness to act in foreign exchange markets when necessary.

These facts create two different questions for EUR/CHF. One concerns the relative income available on comparable instruments. The other concerns the price investors are willing to pay for franc exposure during periods of uncertainty.

A low yield is not the same as a weak currency

FOLITIC analysis: Investors may hold a currency for liquidity, liabilities, diversification or perceived resilience, not only for interest income. A low policy rate therefore cannot establish that a currency must depreciate. The value of those other characteristics can change quickly.

The reverse is also true. Describing the franc as defensive does not make it immune to losses. The relevant exchange rate, purchase price and holding period still matter. A currency can be comparatively resilient during one type of shock and respond differently during another.

Intervention adds a policy variable

A central bank’s stated willingness to intervene is not a fixed exchange rate target. It does not reveal in advance the timing, amount or direction of every operation. Investors should distinguish a published policy statement from an assumption that authorities will defend a particular level.

For a euro based investor holding Swiss assets, franc appreciation can support the translated return. But Swiss business earnings may react differently if a stronger currency affects export competitiveness. The currency translation benefit and the operating effect should be considered separately.

Keep the comparison practical

Review comparable interest rates, inflation trends and the SNB’s assessment of monetary conditions. Identify whether the portfolio needs francs to meet future expenses or is taking discretionary currency risk. That distinction helps explain why two investors can reasonably value the same EUR/CHF exposure differently, even when they agree on the published interest rates.

Sources and context

Analysis prepared on October 10, 2026. Policy figures refer to the dated decisions cited above. Scenarios and portfolio implications are FOLITIC analysis, not reported exchange rate movements.