The Swiss franc hovered around 0.77 per USD, near record highs, supported by safe-haven inflows amid renewed trade tensions, rising geopolitical risks, and persistent uncertainty surrounding AI. President Trump proceeded with new tariffs on key US trading partners, even after the Supreme Court blocked part of the planned measures. Switzerland’s low public debt, resilient and stable economy, and highly predictable policy framework further enhanced its appeal to investors. At the same time, diminished expectations for imminent interest rate cuts continued to underpin the currency.
Swiss inflation remained at 0.1% in January, at the lower end of the Swiss National Bank’s (SNB) 0–2% target band and consistent with its first-quarter projections. The SNB is widely expected to maintain its current policy stance for the foreseeable future, as inflation is forecast to rise only gradually and the threshold for reintroducing negative interest rates remains high. SNB President Martin Schlegel recently emphasized that the central bank is prepared to tolerate brief periods of negative inflation, while keeping its focus firmly on medium‑term price stability objectives.
