SWISS FRANC STRENGTHENS AS SAFE-HAVEN DEMAND RISES AHEAD OF TRUMP'S TARIFF ANNOUNCEMENT
SWISS FRANC STRENGTHENS AS SAFE-HAVEN DEMAND RISES AHEAD OF TRUMP'S TARIFF ANNOUNCEMENT
The Swiss franc has appreciated as investors seek safe-haven assets ahead of President Donald Trump's announcement of significant tariffs on imports from China, Mexico, and Canada.
This has led the USD/CHF currency pair to approach decade lows, reflecting increased demand for the Swiss franc.
President Trump has confirmed plans to impose a 104% tariff on Chinese goods, effective at midnight, in response to alleged currency manipulation by China. Additionally, 25% tariffs are set for imports from Mexico and Canada, aiming to address trade imbalances and domestic manufacturing concerns.
These tariff announcements have contributed to market volatility, with the U.S. dollar weakening against safe-haven currencies like the Swiss franc and Japanese yen.
Equity markets have declined, and the Chinese yuan has hit a record low amid escalating trade tensions.
Traditionally influenced by interest rate differentials, the USD/CHF pair is now primarily driven by market sentiment and geopolitical developments, particularly trade policies under the current U.S. administration.
In response to heightened trade uncertainties, investors are increasingly turning to the Swiss franc as a safe-haven currency, contributing to its appreciation against the U.S. dollar.
