Swiss Franc Rises Amid Middle East Tensions and Inflation Data

The Swiss franc has strengthened due to renewed safe-haven demand triggered by Middle East conflicts. According to Jin10, higher-than-expected Swiss inflation data on Wednesday also supported the franc, reducing the likelihood of the Swiss National Bank lowering interest rates into negative territory. However, Michael Pfister from Commerzbank noted in a report that the Swiss National Bank has expressed increased willingness to intervene in the foreign exchange market due to the Middle East tensions, potentially limiting the franc's gains. Active intervention may be the next step.