Swiss Franc Weakens, US Dollar Remains Unstable
The USD/CHF pair traded cautiously in late Asian trading on Friday, nearing a more than three-week low of 0.7880 set on Tuesday. The Swiss franc weakened as the US dollar came under pressure, although it briefly regained some ground after tensions over Greenland eased.
The US Dollar Index (DXY) traded near a two-week low of 98.26. US President Donald Trump lifted 10% tariffs on several EU members and reiterated that he would not take Greenland by force, easing geopolitical concerns that had previously weighed on the dollar.
However, the market remained cautious due to Trump's imminent announcement of a replacement for Federal Reserve Chairman Jerome Powell, as well as remarks by Swiss National Bank Chairman Martin Schlegel warning of the possibility of negative inflation in Switzerland. Schlegel emphasized that the threshold for negative interest rates remains high, so the Swiss franc will not benefit from ultra-dovish monetary policy. (az)
Source: Newsmaker.id