The Swiss Franc traded around 0.90 per USD, its highest in over a week, as the dollar weakened on hopes that President-elect Donald Trump would impose less aggressive tariffs. Meanwhile, Swiss inflation fell again in December, fueling expectations for more interest rate cuts by the Swiss National Bank this year, potentially starting with a 25 bps reduction in March. Consumer price inflation eased to 0.6% in December, down from 0.7% in November, in line with forecasts, marking the fourth straight month of inflation below 1%. Inflation is expected to fall further in January after an anticipated decline in electricity prices, with the SNB expecting annual inflation to average at 0.3% in 2025, down from 1.1% in 2024, and 0.8% in 2026. Amid increasing global uncertainty, the Swiss franc is seen as a safe haven by investors, as fears grow over potential trade disruptions under Trump's administration and eurozone economic troubles.
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