#CurrencyPairPrediction Inflation plays a key role in the interest rate dynamics between the U.S. dollar (USD) and the Swiss franc (CHF). When inflation rises in the U.S., the Federal Reserve may increase interest rates to maintain price stability, which can strengthen the USD against the CHF. Conversely, Switzerland typically maintains low inflation and a conservative monetary policy, resulting in lower interest rates. These differences influence capital flows, investor expectations, and exchange rate movements. As a result, inflation differentials between the two countries are a major driver of interest rate divergence and USD/CHF currency fluctuations.