Switzerland: Swiss Franc at Over 7-Week High.

The Swiss franc appreciated nearly 1% to trade around 0.81 per USD, its highest level since April 2021, as ongoing trade uncertainties and heightened geopolitical tensions pressured the dollar and lifted demand for safe-haven assets. President Trump announced plans to send letters to key trading partners within two weeks, proposing unilateral tariffs after a fragile trade framework with China. Risk sentiment deteriorated further after he ordered preparations to evacuate Americans from the Middle East amid growing regional threats. Domestically, the combination of subdued price pressures and a weak economic outlook has raised speculation that the Swiss National Bank could reintroduce ultra-loose monetary measures, including a return to negative interest rates in the coming months. Consumer prices fell by 0.1% in May 2025 compared to a year earlier, marking the first deflationary print since March 2021 and posing a challenge to the SNB’s 0–2% inflation target.