Swiss Franc Tumbles as US Inflation Data Fuels Rate Hike Expectations

The Swiss Franc has extended its losses for six consecutive days against the US Dollar, nearing one-and-a-half-month lows at around 0.8100s.

The USD/CHF pair has rallied nearly 0.7% in the last two days due to US data that contributed to Federal Reserve rate hikes, increasing monetary policy divergence with the Swiss National Bank and surging global yields dampening risk appetite.

Thursday's Producer Price Index (PPI) rose to a 5.4% year-on-year rate in August from 4.8% in July, while Core PPI increased to 4.6% Y-o-Y from 4.3% in the previous month.

This has prompted investors to raise their bets on a quarter-point Fed hike next week to almost 70%, according to CME's FedWatch Tool.