Swiss Franc Extends Losing Streak vs Dollar as Fed Decision Looms

The Swiss franc extended its decline against the US dollar for an eighth straight day on Wednesday, pushing USD/CHF toward levels not seen in over a year. The move came as markets priced in a hawkish tilt from the Federal Reserve, while the Swiss National Bank (SNB) is expected to keep policy steady.

Divergent monetary policy expectations between the Fed and SNB continued to pressure the franc. With the Fed likely signaling tighter policy for longer, the yield advantage for the dollar attracted flows out of the Swiss currency.

The pair hit a fresh multi-month high in European trade, reflecting broad dollar strength ahead of the Fed decision. Traders now await the rate announcement and updated economic projections for further direction.