#CurrencyPairPrediction How Interest Rate Differentials Drive USD/CHF Trends Interest rate differentials between the United States and Switzerland are a key driver of USD/CHF movements. When U.S. interest rates rise relative to Swiss rates, the dollar often strengthens against the franc as investors seek higher returns in dollar-denominated assets. Conversely, if Swiss rates become relatively more attractive or U.S. rates fall, demand for the franc can increase, pushing USD/CHF lower. Traders and investors closely monitor central bank policies—especially from the Federal Reserve and Swiss National Bank (SNB)—to anticipate shifts in these differentials, which heavily influence capital flows and currency valuations.