Swiss Franc (CHF) Drops After SNB's Larger-than-Expected Rate Cut

The Swiss franc experienced a sharp decline following an unexpected interest rate cut by the central bank. The currency fell to its weakest level in two weeks, reaching 0.9344 against the euro.

This year, the franc has stood out as the second-best performing currency among G-10 currencies, following the pound.

The central bank's decision exceeded the median forecast of a 25 basis point cut reported in a Bloomberg survey. Analysts view the larger-than-expected cut as an attempt to curb the recent gains of the franc in the coming months.

Jordan Rochester, head of macro strategy at Mizuho, commented on the impact of the interest rate cut: "It is difficult to make an argument for a stronger CHF after today's decision."