2026.04.0208:30:57UTC+00Swiss Franc Subdued

The Swiss franc traded around 0.80 per USD, hovering near its lowest level since mid-January, as investors shifted toward the safety of the US dollar amid persistent geopolitical tensions following President Trump’s pledge to pursue more aggressive strikes on Iran. At the same time, rising domestic inflation has eased pressure on the Swiss National Bank (SNB) to cut interest rates.

Swiss inflation accelerated to a one-year high of 0.3% in March, up from 0.1% in February but below market expectations of 0.5%. The increase was largely driven by higher energy prices linked to the ongoing conflict in the Middle East. These data suggest that the disinflationary impact of a strong franc on import prices is being offset by rising energy costs, giving the SNB a degree of policy flexibility.

SNB Chair Martin Schlegel and SNB Board member Petra Tschudin have reiterated the central bank’s greater readiness to intervene in foreign exchange markets to limit excessive franc strength, noting that a return to negative interest rates would remain a last-resort option.