SNB Drops FX Intervention Warning as Swiss Franc Falls to 14-Month Low Against Dollar

The Swiss National Bank removed its long-standing pledge of "increased willingness" to intervene in foreign exchange markets from its policy statement on September 24, a significant shift in language that had been in place since at least March 2026 when the SNB introduced the phrase to guard against a rapid appreciation of the franc. The removal signals the central bank is no longer alarmed by franc strength and may reflect comfort with its recent weakening trajectory.

The timing coincided with the franc sliding to its lowest level against the dollar since May 2025, with USD/CHF touching 0.8272, up 0.24% on the day. The move came as broad dollar strength persisted near a two-month high against a basket of currencies, supported by expectations of further U.S. interest-rate increases. EUR/USD was simultaneously testing a two-month low, amplifying pressure on franc-denominated assets.

The SNB was widely expected to hold its policy rate at zero on September 25, the lowest benchmark among major central banks, making the language change in its FX statement the main signal for markets to interpret. Bank of America separately forecast EUR/USD would recover to 1.15 by year-end, suggesting analysts see the current dollar surge as potentially limited in duration.