The Swiss franc lost some ground versus the dollar on Friday after the US Federal Reserve raised interest rates as expected, further widening the interest rate differential with Switzerland. The Fed increased rates by a quarter percentage-point to 3.25 percent on Thursday and signalled no pause in its monetary tightening. Higher interest rates make it more attractive for investors to hold US assets, boosting the greenback.
The dollar changed hands at 1.2863/66 Swiss francs, up from 1.2823/25 francs in late trading in Europe on Thursday. The euro stood virtually unchanged at 1.5509/12 francs from 1.5504/09 francs on Thursday.
Foreign exchange markets will be watching the June Purchasing Managers' Index due at 1300 GMT for Switzerland for any further signs of a delay in the recovery in the economy after data showed this week the KOF leading indicator fell to its lowest level in 18 months in June.
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