In the Asian session on Tuesday, the US dollar rose against the Swiss franc.
Despite dropping US Treasury yields, the dollar remains strong.
The Swiss franc is under pressure due to the risk-on mood.
In the early Asian trading hours, the US dollar’s appreciation keeps USD/CHF slightly higher. Following a high of 0.9239 on June 18, the pair fell to a low of 0.9142 the following week.
The USD/CHF currency pair is currently trading at 0.9195, up 0.03 percent on the day.
After dropping near the 91.40 level on Monday, the US dollar index is now trading at 91.82, up 0.05 percent. Investors continued to evaluate the Federal Reserve’s dovish stance and higher-than-expected Personal Consumption Expenditure Index (PCE) data released the week before. On Monday, the Federal Reserve Bank of Dallas Manufacturing Index dipped to 31.1.
On the back of the Fed’s divided official attitude on inflation and interest rates, the 10-year benchmark yields in the United States fell below 1.50 percent.
It’s worth mentioning that the S&P Futures index was trading at 4,290, up 0.23 percent.
On the other hand, despite improved market optimism, the Swiss franc remains under pressure. However, the reappearance of corona cases and US President Joe Biden’s comments on Iran’s nuclear deal soured market sentiment, favoring the safe-haven asset franc.
In the near future, the pair’s performance is projected to be influenced by the divergence in monetary policy stance between the two economies.
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