Swiss Franc Gains Ground Amid Easing US Yields
US Treasury yields fell to 4.93% on Friday as lower crude prices eased persistent inflation fears, weighing on the US Dollar (USD) and boosting the Swiss Franc's (CHF) value.
The decline in oil prices followed news that Saudi Arabia was working to restore flows through its East-West pipeline, while upcoming meetings between US President Donald Trump and Gulf leaders also drew market attention.
Fed Chair Kevin Warsh warned that inflation has remained too high for too long, causing market expectations to adjust rapidly. Traders now price in a 53.1% probability of another rate hike at the Federal Reserve's October meeting, up from 44% the previous day.
The USD/CHF pair extended its losses for the second successive day, trading around 0.8230 during Asian hours on Friday. However, strategists at UOB Group caution that while momentum remains strong, it is too early to tell whether it will be sufficient for the USD to break above 0.8300.