Swiss Franc Reaches an Eight-Year High Against the Dollar

The Swiss franc reached its strongest level against the dollar since 2015 amid speculation the Swiss National Bank will raise interest-rates as the Federal Reserve may be ending its tightening cycle later this year.

(Bloomberg) — The Swiss franc reached its strongest level against the dollar since 2015 amid speculation the Swiss National Bank will raise interest-rates as the Federal Reserve may be ending its tightening cycle later this year.

The currency strengthened as much as 0.5% to 0.8751 per dollar after data showed that US consumer prices increased 0.2% in June, versus estimate for a 0.3% increase.

Swiss National Bank Vice President Martin Schlegel last week said additional rate increases aimed at inflation don’t threaten financial stability. The central bank’s next scheduled meeting is in September.

The franc — both a haven and funding currency for carry trades — is the best-performing G-10 currency over the past year, and stronger against all but the British pound year-to-date.

–With assistance from Vassilis Karamanis.

More stories like this are available on bloomberg.com