The Swiss franc traded around 0.795 per USD, holding close to its highest since July 23rd, supported by safe-haven demand amid ongoing political instability and fiscal concerns in countries like France and Japan. Geopolitical risks also continued to bolster appetite for the franc. Meanwhile, investor confidence is growing that the US Federal Reserve will move ahead with an interest rate cut this month. In Switzerland, SNB President Martin Schlegel pushed back against speculation of a return to negative interest rates, stating there is a high bar for further cuts due to their adverse effects on savers and pension funds. The central bank is expected to leave interest rates unchanged at 0% at its next meeting on September 25, following three months of inflation within its 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, aiming to counter persistently low inflation.