Switzerland: Franc Rebounds From One-Year Low.

The Swiss franc strengthened to around $0.807 against a weaker dollar, rebounding from a one-year low hit on June 24, as sliding oil prices tempered Federal Reserve rate hike bets. Despite gaining ground, the franc remains 4.8% weaker than before the Middle East conflict, and a potential peace deal could further reduce haven demand. The Swiss National Bank kept its policy rate unchanged at 0% for a fourth consecutive meeting, maintaining that the current stance remains consistent with price stability and economic growth. However, the SNB revised its inflation outlook higher and reiterated its willingness to intervene in foreign exchange markets if needed. Meanwhile, the International Monetary Fund reported that Swiss economic growth will slow to 1.1% in 2026 amid weak external demand and tariff uncertainties. The Swiss government also trimmed its own 2026 domestic growth forecast to 0.9%, citing the dampening effects of recent energy price spikes.