Swiss franc weakens as Trump leads, SNB eyes rate cut

The Swiss franc weakened to below 0.87 per USD, marking its lowest level in about three months, as the dollar surged following early U.S. election results suggesting a higher probability of a Donald Trump victory.

Swiss franc weakens as Trump leads, SNB eyes rate cut

This outcome reignited "Trump trades," with expectations that his proposed tax cuts and tariff increases could raise inflation and keep interest rates elevated. Domestically, softer-than-expected CPI data has bolstered speculation that the Swiss National Bank (SNB) may implement a more significant 50 basis point rate cut in December to keep inflation within its 0-2% target range. Swiss inflation unexpectedly slowed to 0.6% in October, its lowest rate over three years.

SNB cuts key rate to 1%, hints at further reductions amid inflation drop

The SNB reduced its key rate by 0.25% to 1% in September and hinted at the possibility of further cuts due to a notable drop in inflationary pressures.