The Swiss franc appreciated to around 0.81 per USD, near its strongest level since 2011, as intensifying tensions in the Middle East drove investors toward safe-haven assets. US military involvement over the weekend marked a significant escalation in the Israel-Iran conflict, raising the risk of a wider regional crisis. Meanwhile, the franc remains supported by broader economic uncertainty tied to geopolitical risks and trade-related concerns. Additionally, the Swiss National Bank (SNB) offered a hawkish signal by indicating no further rate cuts are planned, pushing back against speculation that interest rates could return to negative territory this year. The SNB cut its policy rate to 0% in its sixth consecutive reduction since March 2024, responding to falling inflation and sustained upward pressure on the franc. Notably, inflation turned negative in May for the first time in four years, slipping below the SNB’s 0–2% target range.