Swiss Franc Holds Gains as SNB Rate Hike Odds Fade

The Swiss Franc (CHF) continued its recent strength against the US Dollar on Friday, even as softer-than-expected Swiss inflation data tempered market expectations for an imminent rate hike by the Swiss National Bank (SNB).

USD/CHF traded around 0.7890 during the Asian session, holding near recent lows for a second consecutive day. The pair's decline reflects persistent demand for the safe-haven franc despite shifting monetary policy expectations.

Market participants had previously priced in a higher probability of a rate increase at the SNB's next meeting, but the latest inflation figures have cast doubt on that scenario. Nonetheless, the franc remains well-supported by broader risk aversion and global economic uncertainty.