Thu Mar 13 12:30:00 UTC 2025: ## Swiss Franc Hits High as Global Uncertainty Fuels Safe-Haven Demand, Rate Cut Expected

**Zurich, Switzerland –** The Swiss Franc surged to a new high against the US dollar, reaching 0.878 per USD – its strongest since early December. This surge is driven by a combination of factors, including a weakening dollar and increased investor demand for safe haven assets amid growing global economic and geopolitical anxieties.

Uncertainty surrounding US President Trump’s tariff policies is adding to market jitters, fueling concerns about inflation. Meanwhile, Switzerland’s own inflation continues its downward trajectory, hitting a 0.3% year-on-year increase in February – the lowest since April 2021.

This confluence of factors is leading market analysts to anticipate a 25 basis point interest rate cut by the Swiss National Bank (SNB) at its upcoming March 20th meeting. This would follow a 50 basis point cut in December, bringing the current cash rate to 0.5%. The SNB’s expected action is further supported by sluggish economic growth; the Swiss economy expanded by only 0.2% quarter-on-quarter in Q4 2024, marking its weakest performance since Q2 2023.

The strengthening Franc reflects a broader flight to safety as investors grapple with global uncertainties. The situation underscores the growing challenges facing central banks worldwide as they navigate a complex economic landscape.

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