Federal Reserve rate cuts significantly impact safe-haven currencies like the Swiss Franc (CHF) by weakening the U.S. dollar (USD) and shifting investor sentiment. When the Fed lowers interest rates, dollar-denominated assets become less attractive due to lower yields, prompting investors to seek alternative safe-haven assets like CHF. As a result, the USD/CHF exchange rate typically declines, meaning CHF strengthens. However, the extent of CHF’s appreciation depends on the Swiss National Bank (SNB) and its monetary policy. The SNB often intervenes to prevent excessive CHF strength, as a stronger franc can hurt Swiss exports. If the SNB also cuts rates or signals dovish policies, CHF gains may be limited. Additionally, if Fed rate cuts boost global risk appetite, investors may move funds into riskier assets, reducing demand for CHF. But in times of economic uncertainty, CHF remains a preferred safe-haven asset, reinforcing its strength against the USD. Traders closely monitor Fed and SNB policies, global market sentiment, and geopolitical events to anticipate USD/CHF movements following interest rate changes.