Swiss Franc Rises to Two-Month High Against USD and Against EUR Since April 22

Swiss annual inflation remained unchanged at 1.4% in May and the Swiss franc rose to its highest level against the dollar since late March, significantly dimming the prospect of a possible interest rate cut by the Swiss National Bank (SNB) this month. The May inflation data actually matches the 2024 high and overshadowing the case for a rate cut when the Swiss National Bank will meet on June 20.

In March, the SNB took the lead among major Western central banks to cut its key interest rate by 25 basis points to 1.50%. The bank's chairman, Jordan Thomas Jordan, warned last week that a stronger franc could push up inflation and stressed that the central bank could intervene in foreign exchange markets. The SNB took the lead in March and was the first major central bank to lower interest rates.

Currently, the Swiss franc is still trading 0.32% higher against USD at 1.1207 (up 0.63% to 1.03026 against EUR) reaching its highest level since April 22.