From its January 2020 low, the Swiss franc/yen pair rose sharply by 2026 and temporarily fell back as its correlation with gold was highlighted. Low interest rates, demand for safe-haven assets and a correction in gold's overheated rally are cited as the background.
In January 2020, the Swiss franc/yen pair had a low of ¥110, while the US dollar/yen pair had a low of around ¥107. Since then, the Swiss franc/yen pair surged to well above ¥200 in 2026, with its maximum gain exceeding 80%. The maximum gain in the US dollar/yen pair over the same period was approximately 50%, resulting in a divergence between their movements. Switzerland's policy rate is currently near zero, below Japan's 1.25%, making the low-yielding currency firmer against the yen. These developments are associated with the franc's status as a safe-haven asset.
After the Swiss franc/yen pair's rise stalled at around ¥203, it subsequently fell below ¥190 for a time, with the maximum decline reaching approximately 10%. This movement may have been influenced by the pullback in gold prices, and gold and the Swiss franc continued to move in tandem as safe-haven assets for many years.
Gold's deviation from its 90-day moving average (MA) widened to more than 24% in January 2026, the largest level since 2000, prompting views that the market had become increasingly overheated. By June, the deviation had widened to negative 14%, and the ensuing reaction to the correction of the overbought conditions may have helped limit declines in gold and the Swiss franc.
Gold's deviation from its five-year MA widened sharply to more than 100% in February 2026, prompting views that the degree of overextension was roughly comparable to levels seen since 1980. Although it has now narrowed to the 40% range, the correction of the excessive gains is still considered to be under way over the medium to long term, and views have emerged that the Swiss franc's rebound, like gold's, has limited scope.