Swiss frank rose in European trade against dollar for the second straight session, hitting two-week highs following strong Swiss inflation data, which hit six-month highs.
Such data showed that inflationary pressures remain high on policymakers and bolstered the case for multiple more rate hikes following the expected March hike.
The dollar fell 0.5% against the franc to 0.9313, the lowest since February 23, after closing up 0.7% on Friday away from three-month lows at 0.9440.
The franc rose 0.5% last week against dollar, the first weekly profit in three weeks as the greenback fell against most major rivals.
Swiss Inflation
Swiss consumer prices rose 3.4% in February, beating estimates of 2.9%, and up from 3.3% in the previous reading.
On a monthly basis, prices rose 0.7%, above estimates of 0.5%, and up from 0.6% in January.
Inflationary Pressures
Such data showed mounting pressure on SNB policymakers and the need to keep tightening policies this year.
Swiss Rates
Swiss interest rates are settled at 1%, the highest since 2008, but the second lowest worldwide.
The latest Swiss inflation data bolstered the case for a 0.5% rate hike by the National Bank in March, the second such a hike in a row.
Thus Swiss rates will thus reach 1.5%, compared to an expected 5% US rates following the March Fed meeting, widening the policy gap between both countries.