**CHF/MYR Retreats from 14-Week High Despite Weekly Gain**
*By TradingPedia Staff, original article by TradingPedia.com*
The Swiss franc (CHF) registered a weekly gain against the Malaysian ringgit (MYR) amidst market volatility, global monetary developments, and geopolitical uncertainty. Although the pair settled below its recent 14-week high, strong data from Switzerland and cautious market sentiment contributed to the CHF’s overall strength during the week.
This forex pair, representing the value of the Swiss franc in terms of the Malaysian ringgit, has garnered increasing attention among traders, especially as safe-haven currencies like the CHF have seen increased inflows amid risk-off sentiment in global financial markets.
Below is a comprehensive analysis of the CHF/MYR performance over the week, the underlying economic contexts influencing the moves, and projections for the near term.
## Summary of Recent Price Action
– CHF/MYR rose earlier in the week to hit a 14-week high at 5.4240, showing the franc’s strength amid global risk aversion.
– Despite retreating from those highs and closing the week lower, the pair still posted a weekly gain of 0.22 percent, closing around the 5.3936 mark.
– The week’s high was the franc’s strongest level against the ringgit since early July 2025.
– Technical indicators show a potential consolidation zone around the 5.38 area, while 5.42 remains a near-term resistance.
## Key Drivers Behind CHF Strength
### 1. Safe-Haven Demand
Ongoing geopolitical tensions and global economic uncertainty have boosted investor appetite for traditional safe-haven assets, including the Swiss franc. Typically, during periods of heightened risk, the franc strengthens due to Switzerland’s political neutrality, stable economy, and low inflationary pressures.
– Tensions in the Middle East and currency volatility in regional emerging markets, including Southeast Asia, have driven risk-averse investors toward CHF.
– Expectations of prolonged global monetary tightening have further supported safe-haven inflows.
### 2. Swiss Economic Stability
Switzerland’s economy continues to demonstrate resilience, contributing to a stronger CHF. Recent data has been largely supportive of the Swiss currency:
– Inflation in Switzerland remained subdued at 1.7 percent in September, well within the Swiss National Bank’s (SNB) comfort zone.
– The SNB unexpectedly left rates unchanged at 1.75 percent during its September meeting, citing controlled inflation while keeping options open for future policy tightening or easing depending on prevailing conditions.
– Swiss GDP growth for Q2 was marginal but positive (+0.1 percent q/q), reinforcing Switzerland’s stability.
The combination of low but stable inflation and slow but steady GDP growth has elevated CHF’s status among investors looking for stability.
### 3. SNB Forex Interventions and Guidance
The Swiss National Bank’s policy communication has been another element supporting CHF valuation:
– The SNB has not ruled out further forex interventions, indicating it remains ready to act in currency markets if necessary to prevent excessive appreciation or depreciation of the franc.
– Previous statements indicated that the SNB is shifting its stance slightly, tolerating a stronger franc if inflation remains low.
### 4. Swiss Bond Yields
Yields on Swiss government bonds, while still lower than global counterparts, have edged slightly upward:
– The 10-year Swiss yield recently hovered at 0.80 percent, up from previous months.
– A rising yield typically increases the attractiveness of the domestic currency to foreign investors.
## Factors Weighing on the Ringgit
The Malaysian ringgit, on the other side of the equation, continues to face pressure despite domestic economic recovery efforts.
### 1. Weak Trade Performance
Malaysia’s trade-reliant economy has faced challenges due to weak global demand, especially from China, one of its key trading partners:
– Exports fell 13.7 percent year-on-year in August 2025, reflecting slumping electronics shipments and palm
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