The CHF/SEK currency pair pulled back from a 21-week high of 11.9898 on Tuesday ahead of the outcome of the Swiss National Bank’s and Sweden’s Riksbank policy meetings.
The Swiss National Bank is expected to keep its policy rate without change at 0% at its March 19th meeting.
Swiss inflation has remained subdued. The central bank had forecast average inflation at 0.2% for 2025, at 0.3% for 2026 and at 0.6% for 2027.
The SNB had also reaffirmed its readiness to intervene in the Forex market if needed.
Meanwhile, Sweden’s Riksbank is expected to leave its key policy rate intact at 1.75% at its March 19th meeting.
Policy makers had indicated that borrowing costs would likely remain at this level for some time, as they assess the impact of the current policy stance.
Still, Riksbank warned that uncertainty over inflation and growth had risen, driven in part by geopolitical tensions and shifts in US trade and foreign policy.
Traders will scrutinize forward guidance for clues on the future rate trajectory. A recent surge in oil prices, linked to disruptions in the Strait of Hormuz, has intensified inflation concerns and led to a hawkish repricing of interest rate expectations.
The CHF/SEK currency pair was last down 0.57% on the day to trade at 11.7912.
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