Swiss Franc Stays Near One-Year Low
2026-07-27 13:32
By
Joana Ferreira
1 min. read
The Swiss franc hovered around $0.82, remaining close to its weakest level in more than a year against the dollar, as investors weighed easing tensions between the US and Iran and the sharp decline in oil prices, which boosted risk appetite and reduced demand for safe-haven assets.
Meanwhile, the Trump administration imposed new tariffs on Swiss imports while keeping them within its previously announced 12.5% ceiling.
On monetary policy, the Swiss National Bank is expected to keep its policy rate at 0% through 2027, with any return to negative interest rates seen as a contingency rather than the baseline scenario.
The SNB left rates unchanged in June, and most economists expect no change before early 2028.
Currency markets, however, are more hawkish, pricing in a rate increase by March next year.
Despite a temporary pickup linked to the Iran conflict, Swiss inflation slowed to 0.5% in June and is projected to peak at just 0.8%, remaining well within the SNB's 0%-2% target range.