Dollar Strengthens Against Franc Ahead of Fed Rate Hike

The US Dollar (USD) has gained strength against the Swiss Franc (CHF), with the USD/CHF pair trading slightly higher at around 0.8178 in the Asian session.

This trend is expected to continue, as financial markets anticipate a hike in interest rates by the Federal Reserve (Fed) on Wednesday.

Strategists at Brown Brothers Harriman (BBH) predict that the FOMC will deliver a 25bps hike to a target range of 3.75%-4.00%, which would be its first hike since July 2023.

Nomura analysts also expect the Swiss National Bank (SNB) to continue on its monetary easing path and leave interest rates at 0% in their policy meeting later this month, with no impetus for a change.