Recent developments in both Switzerland and India indicate significant pressures on the Swiss Franc (CHF) and the Indian Rupee (INR), which may impact the CHF to INR exchange rate.
The CHF faces challenges stemming from U.S. tariffs imposed on Swiss exports, which soared to 39% in August 2025. This substantial hike led to a 5.3% decline in Swiss exports during the second quarter of the year, creating concerns about the stability of Switzerland's export-led economy. Analysts suggest that such tariffs could prompt Swiss firms to relocate operations to the U.S. to offset costs, further destabilizing the currency.
Additionally, the Swiss National Bank (SNB) reported a significant first-half loss of 15.3 billion Swiss francs, largely attributed to the weakening U.S. dollar. This sharply declining financial condition, combined with a reduced growth forecast from the IMF, which now expects Swiss growth at only 1.3% for 2025, raises doubts about the Swiss economy's short-term prospects. The SNB has also reduced interest rates to zero to address low inflation and counter the strong CHF.
Conversely, the Indian Rupee has been under considerable strain, recently hitting a record low of 88.36 against the U.S. dollar. Increasingly unfavorable U.S. tariffs on Indian goods, including a 50% rate on key exports, coupled with extensive foreign portfolio outflows exceeding $16 billion this year, have exerted further pressure on the INR. However, recent forecasts from experts indicate that the INR may stabilize, with estimates suggesting a slight improvement to around 88.04 by the end of September.
In terms of market pricing, the CHF to INR exchange rate currently stands at 110.8, which is 2.4% above its three-month average of 108.2. The exchange rate has exhibited stability within a 5% range over the past few months. Analysts predict that ongoing geopolitical tensions and economic uncertainties will keep the exchange rate volatile, urging businesses and individuals to stay vigilant regarding their international transactions.
In summary, the CHF appears under pressure due to tariffs and economic losses while the INR grapples with record lows due to international trade dynamics. Forecasters highlight the need for careful consideration of these factors when making decisions related to currency exchange.
