The Swiss franc hovered around 0.81 per USD, near its June lows, amid continued pressure from U.S. tariffs and rising rate cut expectations. On August 7, President Donald Trump’s 39% tariff on Swiss imports - the highest among developed nations - took effect, targeting luxury and consumer goods such as watches, skincare products, cosmetics, precision instruments, and chocolates. Gold, silver, and pharmaceuticals remain exempt. Meanwhile, inflation remains below the Swiss National Bank’s 2% target, bolstering expectations that rates could be cut further, potentially back into negative territory. The central bank cut its policy rate by 25 basis points to 0% in June in response to a sustained decline in inflation.