Swiss Franc Weakens as US Inflation Surges Past Forecasts

The Swiss franc weakened against the US dollar on Wednesday as US inflation data supported the Greenback. The headline PCE Price Index rose 0.2% month on month in July, exceeding forecasts of a 0.1% increase after a 0.1% fall in June. Annual headline inflation held at 3.7%, matching expectations.

The US Dollar Index stood near 99.16, up nearly 0.25% on the day, despite earlier pressure tied to the US Treasury's increased buybacks of longer-dated securities.

In Switzerland, the ZEW Survey Expectations Index rose to 12.1 in August from 10.0, but expectations persisted that the SNB will keep its policy rate at 0% through the year.