USD Falls Against CHF Amid JPY Strength and High Oil Prices
The US Dollar (USD) fell against the Swiss Franc (CHF) on Wednesday as the Japanese Yen's strength dragged the Greenback lower. The USD/CHF pair traded around 0.8078, down roughly 0.20% on the day.
The sharp rally in the Japanese Yen led to a decline in the US Dollar, while the broader market mood remains shaped by the US-Iran war in the Middle East and the resulting rise in Oil prices. West Texas Intermediate (WTI) Oil trades around $93.50 per barrel, near its highest level since June 8.
The US Dollar Index (DXY), which tracks the Greenback's value against a basket of six major currencies, traded around 98.67, near its lowest level since August 21. The Fed is expected to raise interest rates next week, but elevated Oil prices further reinforce the case for higher interest rates.
The Producer Price Index (PPI) and Consumer Price Index (CPI) data will be released ahead of the Fed's meeting on September 15-16, which could play a key role in deciding whether to raise interest rates. Hotter-than-expected inflation figures could strengthen expectations of a September Fed rate hike and help the US Dollar recover.