The Swiss franc has surged to its strongest level against the euro in ten years, propelled by rising inflation expectations at home and growing speculation that the US may soon cut import duties. These developments have intensified capital flows into the safe-haven currency.

The franc advanced 0.4% to 0.91862 per euro, marking its highest point since January 2015, when the Swiss National Bank scrapped its long-standing 1.20 exchange cap. The currency is now riding a seven-day winning streak, its longest stretch of gains since August of last year.

Momentum accelerated after Swiss National Bank Vice President Antoine Martin cautioned that inflation is set to rise in the coming quarters. His remarks swiftly cooled chatter about a potential return to negative interest rates. Markets now price in the probability of such a move next year at under 30%, sharply down from 64% a month ago.

The franc found additional support from reports that Switzerland is nearing an agreement to reduce export tariffs to the United States. As global investors shifted focus towards safe-haven assets, the Swiss currency asserted its strength on its own.

Hedge funds are betting on further franc appreciation, particularly against the euro and the yen, even though the pace of strengthening is testing the patience of policymakers. But for now, global risk aversion is proving more powerful than any official commentary.