Swiss Franc Holds Steady Amid Tariff Concerns

The Swiss franc was largely steady against the U.S. dollar on Thursday, maintaining its value as the Swiss National Bank (SNB) decided to keep interest rates at zero, a move that was widely anticipated by the market. The SNB's decision comes amid heightened U.S. tariff concerns that could potentially impact the Swiss economy by 2026.

While the dollar edged up 0.1% against the franc, questions linger on whether a negative SNB rate could counter the tariffs' impact. Economist Maxime Botteron from UBS suggested that such a rate would not devalue the franc sufficiently to offset the tariffs' effects.

The focus is now on forthcoming U.S. economic data, which could shift market dynamics. As attention turns to potential U.S. interest rate changes, investors remain wary of how ongoing economic developments and tariff policies will unfold.

(With inputs from agencies.)