“Dollar surges & Swiss franc plummets on central bank day”, In London on Thursday, the dollar saw gains amidst a backdrop of central bank activity, with the Swiss franc experiencing a decline and the pound showing a slight dip. Currency traders remained vigilant as several central bank meetings unfolded throughout the day, impacting market dynamics.
The dollar index, which tracks the currency against six peers, was last up 0.28 per cent at 105.49 after a volatile 10 days that has seen mixed signals from the U.S. economy and European markets rocked by French political uncertainty.
Helping the U.S. currency climb was a drop in the Swiss franc after the Swiss National Bank lowered interest rates to 1.25 per cent, following on from a cut in March.
The dollar climbed 0.64 per cent to 0.8901 francs as the Swiss currency fell from around a three-month high in the wake of the rate cut, which came with forecasts predicting a further fall in inflation to 1.1 per cent in 2025.
“Given the appreciation of the franc in the context of the French political turbulence, we had expected a dovish message, but not a cut,” said Christian Schulz, deputy chief European economist at Citi.
The pound was down 0.14 per cent on Thursday at $1.2701, but up from a one-month low of $1.2658 on Friday.
“The FX focus today switches to central bank meetings in Europe,” said Chris Turner, global head of markets at lender ING.
