Swiss Franc Rallies to 2011-Highs

2025-04-11 08:53 By Luisa Carvalho 1 min. read

The Swiss franc appreciated over 1% to near 0.81 per USD, a level last seen in August 2011, as the dollar tumbled under the pressure of the ongoing U.S.-China trade war.

Given the uncertainty of U.S.

tariff policies, market volatility is expected to persist, prompting investors to seek refuge in safe-haven assets.

In retaliation for Washington’s decision to hike tariffs on Chinese goods to 145%, China announced it would raise tariffs on U.S.

imports to 125%, from the previous 84%.

Meanwhile, the franc's ongoing strength has sparked speculation that the central bank may cut interest rates into negative territory to prevent deflationary risks, as concerns grow that the currency's rise could lower import costs too much for the SNB’s comfort.

The SNB's key rate is now 0.25%, with Swiss inflation at 0.3%, the lower end of its target range.

The bank cut rates for the fifth time in March amid economic uncertainty and low inflation, with analysts expecting another 25 basis point cut in June.



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