The Swiss franc rose to its highest level against the American currency since late March on Tuesday after the annual inflation rate in Switzerland stood unchanged at 1.4% in May, seemingly lowering prospects for a potential rate cut by the Swiss National Bank (SNB) this month.
In March, the Swiss central bank lowered its interest rates by 25 basis points (bps) to 1.50%, becoming the first major bank to do so in Europe. The bank's Chairman Jordan Thomas Jordan cautioned last week that a stronger Swiss franc could be pushing inflation higher, stressing that the central bank could intervene in the currency market.
The Swiss franc rose 0.32% against the greenback, changing hands to 1.12017 at 12:45 pm CET. The Swiss currency also gained 0.63% against the euro, selling at 1.03026, its highest level since April 22.
