Swiss Franc trims losses against US Dollar amid Japanese intervention concerns
USD/CHF trims part of its earlier gains on Friday as the US Dollar (USD) struggles to regain momentum following Thursday’s sharp sell-off, which was driven by suspected intervention by Japanese authorities to curb excessive weakness in the Japanese Yen (JPY).
The Swiss Franc experienced a slight pullback against the US Dollar on Friday as concerns of potential Japanese intervention in the Japanese Yen market overshadowed earlier gains. The USD/CHF pair traded around 0.8086, after reaching a high of 0.8128 intraday. Despite a 0.45% gain for the day, the pair is expected to lose ground on the weekly chart.
The US Dollar initially attempted to recover from six-week lows but lost momentum after reports that the US Treasury may intervene in the Yen market, advising banks to "stand ready for future action." The US Dollar Index (DXY) slipped to 100.07, down from a high of 100.45. Market strategists suggested the USD rally may have peaked, with the DXY expected to move into a range of 96.00-100.00.
Fed Chair Kevin Warsh's failure to address inflation concerns further weakened the Greenback. The Fed maintained interest rates within the 3.50%-3.75% range for the fifth consecutive meeting, with some dissenters advocating for a rate hike. The Swiss Franc proved resilient against the US Dollar, with traders awaiting July CPI data to gauge its impact on the Swiss central bank's policy decisions.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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