US Dollar Rallies Against Swiss Franc as Hawkish Fed Outlook Takes Hold

The US Dollar (USD) has gained ground against the Swiss Franc (CHF), appreciating to around 0.8230 during Asian hours on Monday.

This comes as the Federal Reserve delivered a 25-basis-point rate hike last week, its first in three years, amid efforts to curb inflation and signal more hikes in the coming months.

According to the CME FedWatch tool, markets now price in nearly a 56.5% chance of another US rate hike when the Fed meets next in October, up from around 42.5% a week ago.

Fed Chair Kevin Warsh emphasized that 'inflation is too high and has been for too long,' echoing the sentiment behind the recent rate hike.