The Swiss franc strengthened to below 0.80 per dollar, reaching its highest level since July 25, amid a softer greenback due to growing signs of US labor market weakness and rising bets on Fed rate cuts. Concurrently, the franc's safe-haven appeal remained strong as global trade and geopolitical uncertainties persisted. Domestically, the latest inflation data reinforced expectations for a pause in policy easing by the Swiss National Bank (SNB), when it meets on September 25. Swiss CPI rose 0.2% in August, as expected, marking the third straight month of positive inflation, and staying within the SNB’s 0%-2% target range. The SNB cut its policy rate by 25 bps to 0% in June 2025, setting borrowing costs at zero for the first time since negative rates in late 2022. While the SNB has not ruled out a return to negative rates, President Martin Schegel warned in June that sub-zero rates create challenges for businesses and savers already absorbing the impact of the tariffs.