Dollar Weakening vs Swiss Franc on Falling Oil Prices and Lower Yields

The US Dollar weakened against the Swiss Franc (CHF) for the second straight day, trading around 0.8230 during Asian hours on Friday. The decline in USD/CHF was attributed to falling oil prices and lower US Treasury yields.

The benchmark 10-year Treasury yield retreated to around 4.93% after briefly breaching 5.0%. The drop in yields moderated broader inflation concerns, which had previously weighed on the Greenback. Crude prices also moved lower due to reports that Saudi Arabia is actively working to restore flows through its East-West pipeline.

Market-implied odds of an October Federal Reserve rate hike climbed to 53.1% after comments from Fed Chair Kevin Warsh. Warsh emphasized that inflation has stayed elevated for an extended period, which may limit the downside risk for the US Dollar.