You’re looking at the exchange rate for dollars to swiss francs right now and probably thinking, "Wait, did I read that correctly?"
The greenback is taking a serious beating. As of mid-January 2026, we’re seeing the USD/CHF pair hovering around the 0.79 mark. That’s a massive psychological shift. For years, the parity level—where one dollar equals one franc—was the North Star for travelers and investors alike. Now? That North Star has basically fallen out of the sky.
Honestly, it’s a weird time for the currency markets. If you’re planning a trip to the Alps or you’re a business owner trying to source high-end Swiss components, the math just got a lot harder. This isn't just some random fluctuation. It’s a collision of aggressive U.S. politics and Switzerland’s stubborn refusal to let its economy "relax."
The Elephant in the Room: Fed Independence and the 0.79 Floor
The most dramatic thing happening right now is the tension between the White House and the Federal Reserve. Just yesterday, January 12, 2026, the markets went into a total tailspin. The Trump administration basically threatened Fed Chair Jerome Powell with a criminal indictment over his testimony regarding the central bank’s independence.
Investors hate uncertainty. They hate political interference in monetary policy even more.
When the news broke, the dollar didn't just dip—it slid. People started dumping U.S. assets because they’re worried the Fed’s "data-dependent" approach is about to be replaced by "Twitter-dependent" policy. In times like these, everyone runs to the same place: Switzerland. The Swiss franc is the ultimate "safe haven." When the world feels like it's ending, you buy francs.
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Why the Swiss Franc is Winning
It’s not just that the dollar is weak; it’s that the franc is incredibly robust. Switzerland has a weirdly healthy economy compared to the rest of the world.
- Inflation? Non-existent. While the U.S. is still wrestling with prices, Swiss inflation is sitting at a cool 0%.
- Debt? Low. The Swiss government doesn't spend like there’s no tomorrow.
- Innovation? High. They aren't just making watches; they are dominating in pharma and precision tech.
The Swiss National Bank (SNB) has kept its interest rate at 0%. You’d think that would make the currency less attractive, right? Usually, investors want higher interest rates (like the 3.5% you can get in the U.S.). But right now, safety is worth more than a few percentage points of yield.
The Tariff War and the Swiss Response
We have to talk about the tariffs. Back in August 2025, the U.S. slapped a 39% tariff on Swiss goods. This was supposed to cripple the Swiss economy and weaken the franc.
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It backfired. Sorta.
While the machinery and watchmaking sectors are definitely feeling the burn, the Swiss managed to negotiate their way out of a total disaster. They recently reached a customs agreement that smoothed things over. Instead of the franc weakening, it actually got stronger because the "threat" was removed. It’s like the currency is made of Teflon.
What This Means for Your Wallet
If you’re sitting on a pile of USD and looking at the dollars to swiss francs rate, you've lost about 12% of your purchasing power in the last year. In January 2025, the rate was up near 0.91. Today, you’re getting less than 80 centimes for your dollar.
For Travelers
If you’re heading to Zurich or Geneva, be prepared for sticker shock. Switzerland was already the most expensive country in Europe. Now, with the dollar so weak, a simple coffee and croissant could easily set you back $12-$15 USD.
- Pro tip: Use a card like Revolut or Wise to get the mid-market rate. Don't use the airport kiosks; they will absolutely rob you on the spread.
For Business and Investing
UBS and other big banks are projecting that the dollar will stabilize around 0.78 throughout 2026. This means the "cheap dollar" is the new normal. If you’re importing Swiss goods, you might want to look at hedging your currency risk now before it dips even further.
The Fed vs. The SNB: A Policy Tug-of-War
The Federal Reserve has been cutting rates—three times in a row now—bringing the U.S. rate down to the 3.5% range. They’re doing this because the U.S. labor market is looking a bit shaky.
Meanwhile, the Swiss National Bank is just... standing still. SNB Chairman Martin Schlegel has been very clear: they aren't going back to negative interest rates unless they absolutely have to. By doing nothing while the Fed cuts, the gap between the two currencies narrows, which naturally pushes the franc higher against the dollar.
How to Handle the Current USD/CHF Rate
Looking ahead at the rest of 2026, don't expect a sudden dollar comeback. The geopolitical drama in Washington and the ongoing security concerns in places like Tehran and the Arctic are keeping the "risk-off" sentiment high.
Actionable Next Steps:
- Audit Your Subscriptions: If you pay for any Swiss-based services (like certain encrypted email providers or specialized software), check if you’re being billed in CHF. You might be paying significantly more than you were a year ago.
- Lock in Rates for Travel: If you have a trip planned for later in 2026, consider buying some Swiss Francs now. While it’s possible the dollar could recover, the trendline is currently pointing toward 0.77 or 0.78.
- Watch the Fed in May: Jerome Powell’s term ends in May 2026. Who the White House picks to replace him will determine the dollar's fate for the next four years. If the appointee is seen as a political "yes-man," expect the franc to skyrocket as investors flee the USD.
- Diversify Cash Holdings: If you’re an investor, holding some "hard" currency like the CHF is a classic move to protect against U.S. dollar volatility.
The era of the "strong dollar" against the Swiss franc has officially ended. We’re in a new landscape where the franc is the king of stability, and the dollar is the one struggling to find its footing.