The Swiss Franc edges up against the Dollar as easing oil prices pressure USD, though Fed rate hike expectations limit declines.
USD/CHF pares gains, trading at 0.8166 after hitting a June 2025 high of 0.8185, as a pullback in oil prices weighs on the US Dollar. The Dollar Index (DXY) slips 0.10% to 101.35, reflecting modest Greenback weakness amid softer crude prices and Treasury yields.
Oil prices remain elevated, with West Texas Intermediate (WTI) near $87.50 after peaking above $92.00 on Thursday. The 25% monthly gain stems from Middle East tensions disrupting key shipping routes. Meanwhile, Fed rate hike expectations for September hold at 80%, per CME FedWatch, though July’s meeting is expected to leave rates unchanged.
Geopolitical risks persist, with Middle East conflicts and Fed policy keeping an underlying floor under the Dollar. Diplomatic assurances from China and Russia on Iran arms supplies add modest relief, though Tehran cites US policy as a negotiation hurdle.