Swiss Franc Stays Under Pressure
2026-07-06 11:12
By
Larissa Caser
1 min. read
The Swiss franc traded around $0.806, gaining about 0.5% from its recent low of $0.8099 reached on July 1 while remaining 4.6% weaker than before the Middle East conflict.
The Swiss National Bank left its policy rate unchanged at 0%, maintaining its reliance on currency interventions to prevent excessive franc appreciation.
Swiss inflation slowed to 0.5% in June, marking its first decline in eight months and remaining within the SNB's 0–2% target range as easing geopolitical tensions and lower oil prices reduced price pressures.
At the same time, unemployment fell to a seven-month low of 2.9%.
The International Monetary Fund urged the SNB to remain ready to either tighten policy or cut rates to negative territory if stagflation risks emerge, while the central bank reiterated its commitment to currency market interventions.
Policymakers expect inflation to edge higher later this year while remaining stable over the medium term, while the government cut its 2026 growth forecast to 0.9%.