**CHF/MYR Eases from 14-Week Peak but Retains Weekly Gains: Market Analysis and Outlook**
Originally reported by TradingPedia, the CHF/MYR (Swiss Franc to Malaysian Ringgit) currency pair settled below a 14-week high during recent Forex trading sessions. Despite a minor pullback from this peak, the cross still posted a net gain for the week, driven primarily by global risk sentiment and the relative performance of the Swiss Franc versus emerging Asian currencies.
This article explores the market dynamics that influenced CHF/MYR’s recent performance, economic fundamentals affecting both the Swiss Franc and Malaysian Ringgit, and what traders may expect going forward. Analysis is also supported by inputs from multiple market data sources, offering a comprehensive overview of the factors contributing to the strength of the CHF and the fluctuations in the MYR.
Credit for the original story belongs to TradingPedia’s article titled “CHF/MYR Settles Below 14-Week High, Posts Weekly Gain”, published October 18, 2025.
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### Swiss Franc Strength: Key Drivers
The Swiss Franc (CHF) has historically functioned as a safe-haven currency, particularly attractive during times of global economic distress or geopolitical uncertainty. Its recent appreciation, including against the Malaysian Ringgit, has been amplified by a series of domestic and global factors.
**1. Geopolitical and Economic Uncertainty**
Global financial markets have been contending with several flashpoints, including:
– Ongoing concerns around regional conflicts in Eastern Europe and the Middle East
– China’s economic slowdown and deflationary concerns impacting Asia-Pacific currencies
– Uncertainty around the Federal Reserve’s interest rate trajectory, creating volatility across the USD spectrum and indirectly affecting risk currency dynamics
In such an environment, the Swiss Franc becomes increasingly appealing to institutional investors and fund managers looking to hedge exposure.
**2. Swiss National Bank Policy**
The Swiss National Bank (SNB) has played a critical role in supporting CHF. In recent quarters:
– The SNB surprised markets by hiking its benchmark interest rate more aggressively than anticipated in response to rising inflation
– Swiss inflation, although moderate compared to other economies, prompted a more proactive monetary stance
– The central bank has intermittently intervened in currency markets to temper volatility and support Swiss exports, but largely, the Franc has been allowed to appreciate given improving macroeconomic metrics
Bloomberg and Reuters have both highlighted that investors are interpreting the SNB’s policy stance as relatively hawkish compared to the policies adopted by other central banks, including Bank Negara Malaysia (BNM).
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### Malaysian Ringgit Under Pressure
The MYR has lagged behind other regional currencies in recovering from 2023’s broad US dollar strength. A mixture of domestic and international factors continues to weigh on its valuation.
**1. Weakening Domestic Factors**
– Malaysian GDP growth in 2024 has softened, primarily due to weaker export numbers from declining demand for electronics and palm oil, two of the country’s key trade sectors
– Foreign direct investment (FDI) remains below pre-pandemic levels, partly due to competition from neighboring ASEAN nations
– Political uncertainty ahead of the 2026 general election has also reduced foreign investor sentiment
**2. Soft Monetary Policy**
Bank Negara Malaysia has opted for a cautious stance on rate hikes:
– The Overnight Policy Rate (OPR) remains lower than regional peers, dampening capital inflows into MYR-denominated assets
– The central bank signaled concern over household leverage and consumer credit growth, deterring aggressive rate tightening
– Markets generally perceive the BNM as being less aggressive in managing inflation than other regional banks, reducing MYR’s yield attractiveness
**3. External Headwinds**
– China’s weak recovery has significantly impacted Malaysia’s trade performance, as China is the nation’s largest trading partner
– The US dollar remains relatively strong due to sticky inflation and geopolitical safe-haven flows, putting downward pressure on all emerging market currencies, including MYR
– Oil prices have been volatile,
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