CHF Exchange Rate Loses Against Strong USD

The USD/CHF pair has managed to regain some value this Thursday after some of its losses from recent sessions. The CHF exchange rate has suffered as a result. Overall, then, this means the pair has been moving in a sideways direction for this period. As things currently stand, the pair stands at around 0.90 in terms of dollars to CHF, which marks a vital psychological point.

If we translate this to the rate of CHF to USD, that is $1.11.

One of the main factors behind this shift is the change in US markets. The Fed’s recent statements have shown that, while they will not commit to any more rate hikes, they will also forgo lowering rates. Jerome Powell, the Fed Chair, had a recent meeting this Wednesday. Journalists were keeping a close eye on him for any relevant statements on monetary policy. However, the Fed leader offered no comments on this topic.

Now, investors will be looking at a later meeting by Powell at a panel this Thursday. There, he will discuss the “Monetary Challenges in a Global Economy”.

The US dollar index has been rising in response to investor mood in recent weeks, therefore weakening the CHF exchange rate. Currently, the index is at a level of around 105.50. The current Treasury yield levels undoubtedly contributed to this change, as the 10-year bonds stand near 4.5%.

Some Fed officials have announced measures that do worry investors, however. There have been statements about introducing higher interest rates for short-term loans. Understandably, this has given pause to some.

Meanwhile, there are various factors affecting the CHF exchange rate. The Unemployment rate figures were at 2.1% for October, according to the SECO. Additionally, while there were initially worries about the Israel-Hamas conflict breaking out into a wider war, this seems to have subsided for now. Therefore, the market mood has also improved, possibly impacting Franc’s position as a safe-haven asset.