Switzerland’s annual inflation rate fell to its lowest level since March, weighing on the Swiss Franc in early trading.
The Swiss Franc weakened after July inflation data showed a four-month low, reducing pressure on the Swiss National Bank to tighten policy further. Consumer prices rose at a slower pace, signaling cooling domestic price pressures.
Prior to the release, USD/CHF had climbed for two consecutive sessions, reflecting broader dollar strength. The pair traded near 0.8100 in Asian hours, with limited immediate reaction to the inflation print.
Analysts suggest the softer inflation reading may limit CHF support, potentially allowing further appreciation in USD/CHF if global risk sentiment remains stable.