The Swiss franc fell toward 0.80 per USD amid deteriorating investor sentiment. The Swiss investors’ sentiment index plunged 56.2 points month-on-month to -53.8 in August, its lowest level since November 2022, following the implementation of US tariffs on Swiss exports. Earlier this month, President Donald Trump’s 39% tariff on Switzerland - the highest rate applied to any developed economy - came into force, posing a major threat to businesses and the broader economy. Swiss officials are currently trying to remedy the situation with a new offer to the US, aiming to secure a new deal by October. Meanwhile, July inflation remained below the Swiss National Bank’s 2% target, while flash data showed GDP barely grew in the second quarter - strengthening the case for further monetary easing that could potentially push interest rates back into negative territory.