US Dollar Steadies Near Three-Month Lows Against Swiss Franc Amid SNB Dovish Remarks

The US Dollar (USD) has shown signs of stabilizing near three-month lows against the Swiss Franc (CHF), causing USD/CHF to hold firm on Friday. The pair currently trades around 0.8013, after slipping to its lowest level since June 17 at 0.7949 on Thursday.

Despite a modest recovery, USD/CHF remains on track to close the week in negative territory. This comes as the US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, trades around 98.81, recovering from an intraday low of 98.56.

Dovish remarks from Swiss National Bank (SNB) Governing Board member Petra Tschudin have also dampened sentiment toward the Swiss Franc (CHF). Tschudin told Finanz und Wirtschaft that 'Should it become necessary to lower interest rates below zero to keep inflation between 0% and 2% in the medium term, then we'll do so.'

The US Dollar weakened against its G10 peers earlier this week after the US Treasury announced plans to double its liquidity-support buybacks for longer-dated government securities. Strategists at Scotiabank argue that the currency remains the primary shock absorber for mounting US fiscal concerns.