Swiss Franc Steady Near One-Year Low

2026-08-14 09:12 By Larissa Caser 1 min. read

The Swiss franc hovered near $0.81 after weakening to a nearly one-year low, as uncertainty over the Middle East conflict keeps attention on economic growth, inflation and monetary policy.

Swiss economic growth, excluding sports, accelerated sharply to 1.5% in Q2 2026.

Meanwhile, inflation slowed to 0.4% in July, its lowest level in four months.

Both readings point to limited pass-through from higher energy prices linked to geopolitical tensions, contrasting with the SNB’s expectations of moderating growth and rising inflation.

Foreign exchange interventions supported exporters by limiting safe-haven flows into the franc and preventing excessive appreciation.

However, US trade policy remains a key uncertainty.

The SNB kept rates at 0% at its latest meeting and is expected to hold them there through 2027, with further cuts viewed as a contingency rather than the base case.

Most economists expect the first rate hike in early 2028, while markets are pricing in one as early as March 2027.



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Swiss Franc Steady Near One-Year Low
The Swiss franc hovered near $0.81 after weakening to a nearly one-year low, as uncertainty over the Middle East conflict keeps attention on economic growth, inflation and monetary policy. Swiss economic growth, excluding sports, accelerated sharply to 1.5% in Q2 2026. Meanwhile, inflation slowed to 0.4% in July, its lowest level in four months. Both readings point to limited pass-through from higher energy prices linked to geopolitical tensions, contrasting with the SNB’s expectations of moderating growth and rising inflation. Foreign exchange interventions supported exporters by limiting safe-haven flows into the franc and preventing excessive appreciation. However, US trade policy remains a key uncertainty. The SNB kept rates at 0% at its latest meeting and is expected to hold them there through 2027, with further cuts viewed as a contingency rather than the base case. Most economists expect the first rate hike in early 2028, while markets are pricing in one as early as March 2027.
2026-08-14
Swiss Franc Stays Near One-Year Low
The Swiss franc traded around $0.81 after weakening to a nearly one-year low of $0.821 on July 28th, as uncertainty surrounding the Middle East conflict remained elevated, while inflation concerns eased. Swiss inflation eased to 0.4% in July from 0.5%, its lowest level in four months, underscoring the limited pass-through from higher energy prices linked to geopolitical tensions. The reading contrasted with the Swiss National Bank's expectation of a modest near-term pickup in inflation, following its decision to hold its policy rate at 0%. The SNB is expected to leave borrowing costs unchanged through year-end, with further cuts remaining a contingency rather than the base case, citing no severe damage to Swiss banks. Meanwhile, investor sentiment improved sharply in July, returning to positive territory for the first time since the conflict began. While most economists see the first SNB rate hike in early 2028, currency markets continue to price in an increase as early as March 2027.
2026-08-03
Swiss Franc Trades Near One-Year Low
The Swiss franc hovered around $0.82, remaining close to its weakest level in more than a year against the dollar, as tensions in the Middle East persist and investors remain cautious. 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, citing no severe damage to Swiss banks. Swiss investor sentiment improved markedly in July, returning to positive territory for the first time since the conflict began. While most economists expect the first SNB rate hike only in early 2028, currency markets are pricing in an increase by March next year. Despite a temporary pickup linked to the 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. Meanwhile, the Trump administration imposed new tariffs on Swiss imports while keeping them within its previously announced 12.5% ceiling.
2026-07-29