FX.co ★ Swiss Franc Strengthens on Tariff Deal

The Swiss franc has shown further strength, trading around 0.79 per USD and maintaining its proximity to the peak levels last seen in 2011. This comes after the Swiss government successfully concluded a 15% tariff agreement with the Trump administration, putting an end to a prolonged dispute initiated in August. This disagreement began after Trump unexpectedly increased tariffs on Swiss exports to 39%, significantly higher than those imposed on the EU. Additionally, the franc is buoyed by anticipated increases in inflation. Swiss National Bank (SNB) officials, including Vice President Antoine Martin, have expressed optimism about inflation's trajectory, suggesting it will rise slightly in the coming quarters. This expectation supports predictions that the central bank will likely hold its policy rate steady at 0% during its next meeting on December 11. The demand for the Swiss franc as a safe-haven currency continues amidst ongoing global economic uncertainty, despite the resolution of the US government shutdown and the lack of substantial economic data.