FX.co ★ Swiss Franc at 2011-Highs

The Swiss franc has continued to strengthen, reaching approximately 0.79 against the USD, nearing its peak since July 2011. This appreciation is largely driven by safe-haven demand amid ongoing global economic uncertainties, notwithstanding the conclusion of the US government shutdown. Additionally, the franc is bolstered by anticipations of rising domestic inflation. Officials from the Swiss National Bank (SNB) have conveyed optimism regarding inflation trends, with Vice President Antoine Martin recently stating that inflation "is expected to rise slightly," which has tempered expectations of a reversion to negative interest rates. Concurrently, optimism surrounding Switzerland's potential attainment of a reduced 15% tariff on exports to the US has further uplifted the Swiss currency.