The U.S. dollar gained against the Swiss franc Friday, Oct. 23, as traders looked toward next week’s Federal Reserve meeting, while the 10-year Treasury yield also moved higher.
Investing.com’s daily record showed USD/CHF at 0.8251 Swiss francs per U.S. dollar, up 0.56%. FXStreet’s snapshot at 12:13:58 p.m. ET (16:13:58 GMT) put the pair near 0.8250, also up 0.56%. A higher USD/CHF reading means each dollar buys more francs. The latest advance followed a dollar decline against the franc on Thursday.
The U.S. Treasury’s daily par-yield data showed the 10-year rate at 5.00% Friday, compared with 4.96% Thursday.
FXStreet separately reported that the franc drew defensive buying Thursday as investors questioned the durability of AI-related investment and equities weakened.
The Swiss National Bank left its policy rate at 0% in September. In a discussion summary published Oct. 22, its Governing Board said the franc had lost about 3% on a trade-weighted basis since June. The board tied the decline partly to a widening gap between Swiss interest rates and those abroad. It said low currency volatility also made the franc more appealing to investors using it to fund carry trades. The board described safe-haven demand as limited since June and said current conditions did not warrant heightened readiness to intervene in foreign-exchange markets.
The University of Michigan Surveys of Consumers put its final October sentiment reading at 48.0, down from 48.1 in September. Respondents’ one-year inflation expectation was 4.7%, compared with 4.6% the previous month; the long-run measure came in at 3.5%, up from 3.4%.
The Federal Reserve raised its federal funds target range by 25 basis points to 3.75%-4.00% on Sept. 16. Its next Federal Open Market Committee meeting is scheduled for Oct. 27-28.
