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Swiss franc extends slide versus the dollar as SNB signals lower-for-longer
USD/CHF reached weekly highs near 0.8350, edging toward 17-month highs around 0.8380, after SNB vice chairman Antoine Martin said the SNB remains within its 0% to 2% price stability range.
The Swiss franc weakened for a fourth straight day against the US dollar on Thursday, with USD/CHF moving to weekly highs near 0.8350. FXStreet said the pair is now drawing closer to 17-month highs around the 0.8380 area.
FXStreet reported that Swiss National Bank vice chairman Antoine Martin indicated the SNB would not change its monetary policy, despite uncertainty tied to risks from the War in Iran. He also dismissed interest rate hikes in the near term, saying the SNB is comfortably within its 0% to 2% price stability range.
The outlet added that the comments widened expectations for monetary policy divergence between the SNB and the US Federal Reserve. FXStreet noted that the Fed is expected to hike by at least 50 basis points over the next six months, while the October outlook remained described as wait-and-see in recent FOMC minutes.
FXStreet also pointed to inflation risk warnings from the Fed as supportive of expectations for another hike in December. It said oil price strength is pushing US yields higher, which has helped support the dollar against the franc.