USD/CHF Eases Amid US Dollar Momentum Slowdown
The US Dollar's momentum slowed down into the weekend, causing USD/CHF to ease on Friday. The pair had briefly moved above 0.8250 earlier in the week, its highest level since May 2025, but settled around 0.8220. This decline came despite the Federal Reserve's hawkish 25 basis point rate increase to a 3.75%-4.00% range, which underpinned gains.
The US Dollar Index reached a seven-week high before slipping back to about 100.26 from an intraday peak of 100.56. The 10-year US Treasury yield hovered near 5.00%, close to the 2007 high of 5.04% touched earlier this week, due in part to firm oil prices and elevated energy supply risks.
Swiss Franc weakness contributed significantly to USD/CHF's gains, as the Swiss National Bank holds its policy rate at zero. Markets expect a decision from the SNB next week, which may impact the pair's trajectory. The use of the Swiss Franc in carry trades has increased due to the Bank of Japan's policy normalization and higher Japanese rates reducing the Yen's appeal.