Swiss Franc Plummets to Fresh Lows on SNB's Dovish Stance and Strong US Yields

The Swiss Franc (CHF) plummeted to fresh 16-month lows against the US Dollar (USD), touching the $0.8380 level and poised to complete a six-week rally.

This move comes as Swiss inflation data supports the dovish stance of the Swiss National Bank (SNB), allowing it to maintain low interest rates for an extended period.

The Consumer Price Index (CPI) accelerated to 1% year-over-year in September, while monthly CPI eased to 0%, aligning with market expectations and bolstering the SNB's accommodative policy.

Meanwhile, US Treasury yields reached multi-decade highs, bolstering demand for the US Dollar. The yield on the 10-year note surpassed 5.30% on Wednesday, while the 30-year yield hit 5.65%, both at 24-year highs.