The Swiss franc hovered around 0.78 per USD, near historic highs, as investors balanced escalating geopolitical risks against the prospect of SNB intervention and subdued inflation data. According to The New York Times, a day after the latest attacks began, operatives from Iran’s Ministry of Intelligence indirectly reached out to the CIA to discuss possible terms for ending the conflict. Officials familiar with the approach, however, doubted that either the Trump administration or Iran was ready in the near term to pursue a diplomatic “offramp.”
At the same time, Swiss National Bank Vice-President Antoine Martin reiterated the central bank’s increased readiness to step in to counter excessive franc strength, pointing to the challenging geopolitical backdrop. Swiss inflation held at 0.1% in February for the third consecutive month, defying expectations for a 0.1% decline and remaining at the lower bound of the SNB’s 0–2% target range. The data kept policymakers wary, as persistent weakness in price pressures sustains concerns about deflation risks.
