The Swiss franc hovered around $0.81, its weakest level in a year, as traders remained cautious amid escalating geopolitical tensions. Oil prices extended their rally following an intensification of the US-Iran conflict, heightening the risk of disruptions at another key maritime chokepoint and stoking concerns over tighter energy supplies, stronger inflation pressures, and weaker economic growth.
At the same time, the Trump administration introduced new tariffs on Swiss imports while still honoring earlier commitments to keep tariff ceilings at or below 12.5%. In monetary policy, the Swiss National Bank left its policy rate unchanged at 0% in June and reiterated its readiness to intervene in the foreign exchange market to prevent excessive appreciation of the franc.
Minutes from the meeting indicated that policymakers recognized rising near-term inflation risks, although their medium-term inflation outlook remained largely unchanged. Since the latest flare-up in Middle East tensions, the franc has weakened by nearly 1%.
