Swiss Franc Is Standout Haven Bet in Trump’s Tariff Flareup

Core Viewpoint - The Swiss franc is solidifying its status as a preferred safe haven currency amid rising global risk aversion due to US President Donald Trump's recent tariff proposals [1][4]. Group 1: Currency Performance - The Swiss franc led gains among Group-of-10 currencies, advancing 0.7% against the US dollar and reaching a two-month high against the euro [2]. - The franc is trading close to a record high against the Japanese yen, highlighting its strength as a safe haven [2]. Group 2: Investor Sentiment - Investors are increasingly favoring the Swiss franc due to its modest debt burden, political neutrality, and predictable policy-making, contrasting with the US and Japan [3][6]. - The franc has historically matched or outperformed gold in purchasing power, making it a favored choice among traditional safe havens [5]. Group 3: Economic Stability - The Swiss economy benefits from political stability, a balanced budget, and a persistent current account surplus, which contribute to the franc's outperformance against its peers [6]. - On risk-off days, the franc tends to rally against the dollar, consistently outperforming the yen and providing a stronger buffer against market volatility [7].