FXStreet reported that the dollar rose 0.27% against the Swiss franc on Oct. 19, with U.S. and Swiss interest rates far apart ahead of the Federal Reserve’s next meeting.
The outlet quoted USD/CHF at about 0.8263 francs per dollar in an article published at 11:40 a.m. ET (15:40 UTC). It did not give a separate time for the currency quote. The Swiss National Bank (SNB) listed 0.8245 francs per dollar for Oct. 19 without a quote time. Neither reading establishes a closing rate.
The Fed raised its target range by a quarter percentage point to 3.75% to 4% on Sept. 16. The SNB held its policy rate at 0% on Sept. 24, leaving a wide gap between the two central banks’ rates.
The inflation backdrop also differs. The U.S. Bureau of Labor Statistics said consumer prices were 3.7% higher in September than a year earlier. Switzerland’s Federal Statistical Office reported a 1.0% annual increase for the same month.
Minutes of the Fed’s September meeting showed most participants saw another rate increase as likely this year. They said new economic information would guide future decisions. The SNB, meanwhile, said the franc’s recent decline had helped Swiss economic activity.
The U.S. Department of the Treasury put its 10-year par yield at 5.15% on Oct. 19, up from 5.09% on Oct. 16. Its daily reading uses indicative quotes obtained near 3:30 p.m. ET, after FXStreet published its currency report.
An earlier EconoTimes report on United Overseas Bank’s dollar-franc outlook covered the bank’s view, relayed by FXStreet, that USD/CHF could reach 0.8200 francs per dollar over one to three weeks. That level would mean fewer francs for each dollar than either Oct. 19 reading.
The Fed meets Oct. 27–28, followed by the SNB’s next rate decision on Dec. 10.
