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Swiss franc weakens to 13-month low as USD and oil boost Fed bets
USD/CHF rose to about 0.8170 and the CME FedWatch Tool showed an 83% chance of a September rate hike.
FXStreet reports USD/CHF climbed to its highest level since June 2025, supported by a stronger US dollar and higher oil prices tied to an expanding Middle East conflict. At the time of writing, the pair was trading around 0.8170 and extending gains for a fourth straight day.
The US Dollar Index, which tracks the greenback against a basket of six major currencies, was near 101.45, its highest level in three weeks. FXStreet links the move to renewed Federal Reserve rate hike expectations as surging energy prices raise concerns that inflation could reaccelerate.
The outlet also pointed to ongoing geopolitical tensions, noting the war has not eased after the US and Iran resumed attacks earlier this month. It said oil supply disruptions have spread beyond the Strait of Hormuz to the Bab el-Mandeb Strait after Yemen’s Ansar Allah attacked two Saudi oil tankers in the Red Sea.
FXStreet added that markets now price an 83% chance of a Fed rate hike in September, and a probability near 35% for next week’s meeting, according to the CME FedWatch Tool. It also cited US data showing initial jobless claims fell to 187K last week, below the 212K market expectation, while traders awaited preliminary S&P Global PMI data for July due Friday. Meanwhile, the Swiss National Bank has continued to signal it is ready to intervene against excessive franc strength, limiting the franc’s downside protection.
Latest closeDollar index 101.12 ▼0.1%