US Dollar Surge Crushes Swiss Franc as Hike Bets Reach Record High

The US Dollar has gained ground for the third consecutive day against the Swiss Franc, trading at around 0.8140 during the Asian hours on Friday.

This appreciation is largely due to growing expectations of a Federal Reserve rate hike in September, with markets currently pricing in a greater than 72% probability of a 25-basis-point increase next week.

Investors are also bracing for the upcoming US consumer price index report, which could further solidify these monetary tightening expectations.

The Swiss Franc is under downward pressure due to a widening interest rate differential between Switzerland and the United States, with the Swiss National Bank expected to leave its key policy rate anchored at 0% through the end of the year.