Swiss franc rose in European trade on Monday against a basket of major rivals, extending gains for the second straight session against the dollar away from recent four-month lows.
The gains came following strong Swiss inflation data, with consumer prices rising above expectations, hurting the odds of a rate cut in March.
USD/CHF
USD/CHF fell 0.25% today to 0.8806, with a session-high at 0.8838, after rising 0.15% on Friday, the first profit in three days off four-month lows at 0.8892.
Franc lost 0.3% last week, the fifth weekly loss in a row, as the Swiss National Bank gave up its policies of supporting the local currency to counter inflation.
The SNB said last December that boosting the franc’s strength isn’t a priority anymore, with risks attached to forex intervention.
Swiss Inflation
Earlier data showed Swiss consumer prices rose 1.2% y/y in February, above estimates of 1.1%, while still down from 1.3% in January.
On a monthly basis, consumer prices rose 0.6%, above estimates of 0.5%, and up from 0.2% in the previous reading.
Such data could be slightly concerning to SNB policymakers and could delay the decision to cut interest rates.