Swiss frank fell in European trade against dollar for another session, plumbing five-week lows following weak Swiss data, amid concerns about a rate hike by the Swiss National Bank next month.
The dollar on the other hand extended its strong run following bullish remarks by Fed officials, which bolstered the case for a Fed rate hike in June.
Dollar rose 0.5% against Swiss frank to 0.9007, the highest since April 12, with a session-low at 0.8949.
Franc declined 0.1% yesterday against dollar, the third loss in four sessions as haven demand weakens.
Swiss Rates
Recent Swiss data showed consumer prices rose 2.6% last month, approaching the 2% target set by the SNB.
Such developments reduced pressures on Swiss policymakers and hurt chances of a rate hike at the June meeting.
Dollar
The dollar index rose 0.4% on Wednesday to a six-week high at 103.03, against a basket of major rivals.
After extensive talks, US President Joe Biden is approaching a compromise with House Republicans to raise the debt limit before the deadline.
Otherwise, Chicago Fed President Austan Goolsbee said it remains too early to talk about interest rate cuts, while Cleveland Fed President Loretta Mister said that stubborn inflation might pave the way for further changes in interest rate pricing.
Such remarks raised the chances for a 0.25% rate hike by the Federal Reserve at the June meeting from 20% to 22%.