Dollar Reclaims Edge Against Franc as Oil Rally Fears Spark Hike Projections

The US Dollar strengthened against the Swiss Franc on Tuesday, reaching around 0.8110 in early European hours for the second straight session.

The uptick in oil prices triggered a sharp rally in crude energy, which in turn pushed up US Treasury yields and revived fears of an earlier-than-expected Federal Reserve rate hike.

FedWatch Tool data showed a 52% implied probability of a 25-basis-point rate increase in September, up from 44.4% the previous day.

Cleveland Fed President Beth Hammack said that multiple additional rate increases may be necessary to contain inflation pressures, and the upcoming Consumer Price Index release is expected to shape the Fed's policy course.