FX.co ★ Swiss Franc Holds Firm

The Swiss franc experienced a slight decline, settling around 0.795 per USD, but it remains close to the highs reached in 2011. This strength is attributed to relief from the Swiss government's achievement in reducing the US tariff to 15%, down from a previous peak of 39%, which was the highest ever imposed on a developed nation. Recent figures reveal that Switzerland's export-dependent economy contracted in the third quarter for the first time in over two years, primarily due to the significant impact of these US tariffs. Additionally, the franc is supported by anticipation that the Swiss National Bank (SNB) will maintain its policy rate at 0% in December in response to projected inflation increases. SNB officials have conveyed confidence in a gradual upward inflation trend, with Vice President Antoine Martin indicating it is "expected to increase slightly" over the coming quarters. Furthermore, demand for the Swiss franc as a safe haven continues amid ongoing global economic uncertainties, which have been exacerbated by delayed US economic data due to the prolonged government shutdown.