The Swiss franc was trading near 0.79 per USD, close to a two-week low, as ongoing uncertainty surrounding the US–Iran conflict drove investors toward the US dollar as a safe-haven asset. The initial support for the franc following the announcement of a ceasefire extension faded quickly amid stalled negotiations and continued tensions in the Strait of Hormuz, keeping risk sentiment fragile.
At the Swiss National Bank’s General Meeting, Chairman Martin Schlegel reiterated that the SNB remains ready to adjust monetary policy and intervene in foreign exchange markets, underscoring its willingness to purchase foreign currencies to curb franc strength. He also warned that Switzerland faces a more uncertain economic outlook, characterized by subdued short-term growth and a likely pickup in inflation driven by higher energy costs. Recently, Swiss inflation has been hovering at the lower bound of the SNB’s 0–2% target range, which the central bank defines as consistent with price stability.
