Swiss Franc hits fresh low since May 2025, near 0.8300 vs USD amid Fed-SNB divergence
The USD/CHF pair attracts some follow-through buying for the fourth straight day, hitting a fresh high since May 2025 during the Asian session on Monday. Bulls now await acceptance above the 0.8300 mark before positioning for further gains amid a supportive fundamental backdrop.
The Swiss Franc recently hit a new low since May 2025, nearing 0.8300 against the US Dollar due to a widening gap in interest rates between the Swiss National Bank (SNB) and the US Federal Reserve (Fed). The SNB maintained its interest rate at 0% during a recent meeting, citing global oil price fluctuations and regional uncertainties, while the Fed opted for a 25 basis points rate hike earlier this month.
This disparity in monetary policy, coupled with energy-driven inflation risks and geopolitical uncertainties in the Middle East, has bolstered the US Dollar's status as a reserve currency, further supporting the USD/CHF pair.
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