The Swiss franc may replace the yen as the preferred funding currency for carry trades.

⑴ Rabobank analysts pointed out in a report that in arbitrage trading, investors borrow low-yield currencies to buy high-yield currencies, and the Swiss franc may replace the yen as the preferred funding currency. ⑵ She stated that if the Bank of Japan signals an accelerated tightening of policy this Friday, given Switzerland's low interest rate level, the market may shift its focus to the Swiss franc. ⑶ However, the Swiss franc's long-established status as a safe-haven currency may deter some investors, as its exchange rate could surge sharply in the event of increased market anxiety. ⑷ Rabobank expects the euro to rise to 0.95 against the Swiss franc within three months, but given the political risks facing the eurozone next year, the bank does not expect a strong euro rally.