The Swiss Franc (CHF) slides to its weakest level in more than ten months on Wednesday as hawkish Federal Reserve (Fed) outlook boosts the US Dollar (USD).
At the time of writing, USD/CHF trades around 0.8126, extending its gains for a sixth consecutive day
The US Dollar continues to edge higher, climbing to its highest level since May 2025. Renewed demand for the Greenback comes after the Federal Reserve delivered a hawkish hold at last week’s policy meeting, where a majority of policymakers signaled that a rate hike later this year may be needed to contain inflationary pressure driven by higher energy costs. The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, is trading around 101.36, near its highest level in over a year, since May 2025.
US Consumer Price Index (CPI) accelerated to 4.2% in May, more than double the Fed’s 2% target. Attention now turns to the Personal Consumption Expenditures (PCE) Price Index report due on Thursday. Economists expect the core PCE Price Index, the Fed’s preferred inflation gauge, to rise to 3.4% YoY in May from 3.3% in April.