Although there are many factors affecting the value of currency for a given country relative to others, there are still the same fundamental laws of economics of supply and demand that can be applied to this asset class. If the demand for a given currency increases this implies its value will go higher thus increasing its price relative to other currencies. The opposite is true if there is too much supply of currency of a given country in its economy. These are just a few variables that affect FX rates by no means this is an exhaustive list:

- Each countries’ level of Gold in Reserve
- The amounts of the Imports coming in and the Exports going out of the country
- The level and amounts of foreign investment that the country receives
- The inflation levels in the economy
- The amount of the public debt
- Political stability and governmental policy
- Interest rates imposed by the Central bank in the particular country
- Current Account deficit that the country runs in other terms the balance of payments
- Unemployment rates

On the basis of changes in a number of these factors we see how the US dollar has appreciated against the Swiss Franc or alternatively said the Swiss Franc has been devalued depending on your point of view. I will view this case from the US appreciation standpoint. In terms of Gold Reserves both countries have kept a pretty stable numbers around 1039.99 metric tonnes for Switzerland and 8133.46 for the US. In regard to imports, exports and trading balance both countries have seen an increase over the last years.
A determining difference comes out of the levels of the Interest rates in both countries. While the FED has kept rates stable at 0.5% in achieving economic improvements paired with the Democratic government of Obama where unemployment and national debt was reduced the central bank of Switzerland was forced to introduce negative rates. The central bank has been forced to bring the rates from 0.5% to -0.75% over the last years. While the US has managed a stable inflation rate around 2% the Swiss have experienced negative inflation rate around -1% devaluing their goods and services in the economy.
Governments and central banks are generally responsible for monitoring and control of money supply. In the case of US it is the Federal Open Market Committee (FOMC) that regulates the money supply policy and I suspect for Switzerland it is the Swiss National Bank (SNB) that is responsible for the supply of Swiss Francs. Money supply is a key control variable that controls the interest rate, which affects exchange rates, therefore too much money injected in the economy would increase inflation thus decreasing the value of money which would deter foreign investors to invest in that country's currency.
If inflation in US is relatively lower compared with Switzerland then US exports will become more cost effective and there will be an increase in demand for dollars to buy American goods, by the same token Swiss goods will be less competitive and so Americans will buy less Swiss products. In our case study as time passes one can purchase more Swiss Francs for one dollar, thus this will increase a demand for Swiss goods thereby increasing the value of CHF over time to achieve market equilibrium conditions.

Therefore countries with low inflation rates generally tend to observe an increase in their value of currency, thus one needs more of foreign currency to purchase one dollar. Inflation would increase cost of goods and services, on the other hand too little flow of money would stifle economic growth therefore a country would experience higher unemployment rates.

The direction of the flow of money into and out of a country is dictated by a simple principle: Money will flow in the direction where it can grow the fastest (highest rates of return) whilst under going the least amount of risk experienced by a foreign investor.

Other USD/CHF rate drivers could be SNB quarterly LIBOR rates and monetary policy changes, similarly announcements released from the Fed's and FOMC in the US, trade imbalance between the two countries, GDP, consumer confidence, consumer price index, business efficiency, etc.

Finally, the Swiss have kept stable levels of government debt of around 34% of GDP while the use have seen a slight increase over the years though the additional borrowing has been used to provide more liquidity and cash in the economy resulting in further strengthening of the greenback. Looking at the future Trump presidency and his promises to attract foreign investments, reduce unemployment and boost the economy by legislations and international tariffs, we would be looking at further appreciation of the greenback in 2017.
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