Swiss Franc Makes Comeback Against US Dollar After Recent Sell-Off

The US Dollar Index has risen to its seven-week high of 100.56, but the Swiss Franc (CHF) is making a comeback against the Greenback after a recent sell-off.

The USD/CHF pair fell for a third straight day, reaching 0.8209 at the time of writing, as traders likely book profits following its one-sided rally from mid-August.

Hawkish Federal Reserve (Fed) expectations are supporting the US Dollar, but a modest pullback in US Treasury yields is limiting the Greenback's advance.

The SNB is expected to keep its policy rate at 0%, with all 35 economists polled by Reuters predicting no change on Thursday. The wide interest-rate gap between the United States and Switzerland could limit additional gains for the Swiss Franc, which remains one of the worst-performing major currencies this year.