The Swiss franc held around 0.78 per USD, near its strongest level since July 2011, as fading optimism over a lasting truce between the US and Iran reduced safe-haven demand for the dollar. Easing geopolitical tensions have tempered fears of a prolonged energy and inflation shock and have also lowered expectations for a more aggressive policy stance by major central banks.
At the same time, minutes from the SNB’s March meeting highlighted rising uncertainty about Switzerland’s economic outlook, with global developments—particularly the conflict in the Middle East—identified as key inflation risks. Policymakers stressed that, against the backdrop of elevated geopolitical tensions and persistent safe-haven inflows, the SNB remains strongly prepared to intervene in foreign exchange markets to prevent a rapid and excessive appreciation of the franc that could jeopardize price stability in Switzerland.
