Swiss Franc Hits 13-month Low

The Swiss Franc touched 0.82 against the USD, the lowest since June 2025. Over the past 4 weeks, US Dollar Swiss Franc gained 0.59%, and in the last 12 months, it increased 2.8%.

The Swiss franc has been trading around the $0.80 level since mid-June as investors continue to assess the impact of escalating hostilities in the Middle East. Renewed tensions have pushed oil prices higher, prompting markets to reassess the outlook for global growth, inflation, and monetary policy. The Swiss National Bank left its policy rate unchanged at 0% in June, stating that the medium-term inflation outlook had changed little. However, the meeting minutes revealed that policymakers acknowledged geopolitical tensions had increased near-term inflation risks. The SNB also reiterated its willingness to intervene in the foreign exchange market to counter excessive franc appreciation and preserve price stability. Meanwhile, the IMF urged the central bank to remain prepared to adjust interest rates should a stagflation scenario emerge. The Swiss franc has fallen more than 4% against the US dollar since the outbreak of the conflict with Iran and is down 1.6% so far this year.

The Swiss franc traded around $0.809 while US-Iran tensions increase demand for safe-haven assets. US-Iran tensions remained elevated after Washington revoked the 60-day waiver allowing Iran to sell crude and ended the ceasefire. Conflicting statements over the Strait of Hormuz further heightened uncertainty, with President Donald Trump insisting the waterway remained open to commercial shipping while Tehran claimed it had closed the strait after intercepting two vessels it said were using an unauthorized route. As a result, concerns over supply disruptions and its impact on inflation boosted demand for safe-haven assets and strengthened the Swiss franc while the US dollar remained stable. The Swiss National Bank left its policy rate unchanged at 0% and reiterated its willingness to intervene in foreign exchange markets to curb excessive franc appreciation and imported inflation.