Suddenly Stronger US Dollar Pressures Swiss Franc Amid Higher Inflation

The US Dollar (USD) gained ground against the Swiss Franc (CHF) on Wednesday, with the USD/CHF exchange rate rising by nearly 0.47% to around 0.8052.

This move comes after the release of the latest US inflation data, which showed that the Personal Consumption Expenditures (PCE) Price Index rose 0.2% month-over-month in July, exceeding forecasts of a 0.1% increase.

The core PCE Price Index, the Federal Reserve's preferred measure of underlying inflation, also increased by 0.2% MoM, matching expectations but accelerating from June's 0.1% rise.

While these figures reinforced expectations that the Fed will leave interest rates unchanged at its upcoming meeting, inflation remains above the central bank's 2% target, leaving room for an interest-rate hike in the future.