CHF/SGD settles below 1-week high, posts weekly gain

The CHF/SGD currency pair settled below recent high of 1.6222, its strongest level since September 18th, in the wake of the Swiss National Bank’s policy decision.

The Swiss National Bank left its policy rate without change at 0% at its September 25th meeting, in line with market consensus. This way, borrowing costs remained at their lowest level since August 2022.

Inflationary pressure has remained subdued, as inflation picked up to 0.2% in August from -0.1% in May, propelled mostly by tourism and imported goods.

The central bank now forecasts average inflation at 0.2% for 2025, at 0.5% for 2026 and at 0.7% for 2027.

In the meantime, Singapore’s manufacturing production shrank 7.8% year-on-year in August, data showed, following a revised up 7.7% growth in the preceding month. It has been the first drop since June 2024.

On the global trade front, US President Donald Trump announced a new round of tariffs on imported drugs, trucks and furniture, which will take effect on October 1st.

The exotic Forex pair gained 0.18% for the week.