FXStreet put USD/CHF near a two-week high shortly before the Federal Reserve’s decision, a snapshot of Swiss franc pressure ahead of a vote that kept U.S. rates unchanged.
At 11:56 a.m. ET (15:56 UTC) on Oct. 28, the pair was around 0.8303. FXStreet reported that it had risen for a fourth consecutive day.
At 2 p.m. ET (18:00 UTC), the FOMC kept the federal funds target range at 3.75% to 4%, following a quarter-point increase in September. The 10-2 vote included dissents from FOMC members Lisa D. Cook and Beth M. Hammack, who each preferred a quarter-point increase at that meeting. The committee described economic growth as strong and said inflation was still elevated; it did not specify its next rate move.
The Swiss National Bank (SNB) left its policy rate at 0% on Sept. 24. In a summary published Oct. 22, it said the franc had lost about 3% on a trade-weighted basis since June. The SNB linked the decline to the gap between Swiss and foreign interest rates, and said low exchange-rate volatility also encouraged investors to borrow francs to finance carry trades. It reported limited safe-haven demand for the franc over that period. EconoTimes previously covered the franc’s gains ahead of the Fed meeting.
The FOMC’s next scheduled meeting is Dec. 8-9.
