Swiss Franc Stays Near Lows as Fed Rate Hike Fuels Dollar Strength

The Swiss Franc has remained near its 16-month lows against the US Dollar, trading around 0.8250 during Asian hours on Thursday.

This comes after the USD/CHF pair reached nearly 16-month highs the previous day.

Despite this, the Greenback is expected to appreciate further due to potential policy tightening by the Federal Reserve (Fed), which raised its federal funds rate by 25 basis points to a target range of 3.75% to 4.00%

Fed Chair Kevin Warsh explained that the hike was driven by inflation remaining 'too high' and lingering 'for too long', describing it as a 'sober' and 'responsible decision.'