Swiss franc backs off six-week high on profit-taking

Economies.com
2023-03-15 11:18AM UTC

Swiss franc fell in European trade against a basket of major rivals, extending losses for the second day against dollar off six-week highs on profit-taking. 

 

As demand falls on safe havens, franc suffered, with fears receding about the US banking crisis with Wall Street rebounding. 

 

The dollar rose 1% against the franc to 0.9234, with a session-low at 0.9122, after closing down 0.35% yesterday, the first loss in five days on profit-taking off six-week highs at 0.9070. 

 

The franc jumped over 3% in a week against the dollar on haven demand while investors shun risks following the collapse of the SVB and the closure of two other banks in the US. 

 

Swiss Rates

 

After recent data showed Swiss inflation climbed, investors now expect a 0.5% rate hike by the Swiss National Bank at the March meeting. 

 

That would pump rates to 1.5%, a level that economists still believe it to be too long to control inflation, with expectations of another 0.5% hike in June. 

 

The Dollar

 

The dollar index rose 0.8% on Wednesday off six-week lows at 103.44 against a basket of major rivals. 

 

Following recent US inflation data which showed consumer prices slowed down in February, analysts now expect a 0.25% hike by the Fed in March.

 

Now investors await important data on US retail sales and producer prices to gather more clues about the economy. 

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