- The USD/CHF is quoted laterally around 0.8820 despite the fact that the US dollar is strong.
- Fed Williams believes that the current moderately restrictive policy position is appropriate.
- The SNB cut its interest rates at 25 basic points to 0.25% on Thursday.
The USD/CHF pair is flattened around 0.8820 during the negotiation hours of North America on Friday. The Swiss frank torque lies laterally despite the fact that the US dollar (USD) exhibits strength amid the expectations that the Federal Reserve (Fed) will not cut its key interest rates in the short term.
The American dollar index (DXY), which tracks the value of the dollar against six main currencies, rises about 104.00.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. American dollar was the strongest currency against the Australian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.27% | 0.27% | 0.10% | 0.11% | 0.45% | 0.13% | 0.01% | |
| EUR | -0.27% | 0.02% | -0.16% | -0.12% | 0.19% | -0.06% | -0.27% | |
| GBP | -0.27% | -0.02% | -0.15% | -0.14% | 0.17% | -0.08% | -0.27% | |
| JPY | -0.10% | 0.16% | 0.15% | 0.00% | 0.33% | 0.05% | -0.15% | |
| CAD | -0.11% | 0.12% | 0.14% | -0.01% | 0.30% | 0.06% | -0.13% | |
| Aud | -0.45% | -0.19% | -0.17% | -0.33% | -0.30% | -0.25% | -0.54% | |
| NZD | -0.13% | 0.06% | 0.08% | -0.05% | -0.06% | 0.25% | -0.18% | |
| CHF | -0.01% | 0.27% | 0.27% | 0.15% | 0.13% | 0.54% | 0.18% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
Fed officials have declared that they are not in a hurry to move on to trim of interest rates while fighting to interpret the result of the economic policies of the president of the United States (USA), Donald Trump. In the North American session of Friday, the president of the Bank of the Fed of Chicago, Austan Goolsbee, said in an interview with CNBC that the Fed needs to be a “firm hand” and take the “long -term vision” on the economy. Goolsbee added that the Central Bank needs to know how long the “tariffs, possible reprisals, and their impact on consumers” last.
Separately, the president of the New York Fed Bank, John Williams, said that the current moderately restrictive monetary policy is “totally appropriate” with a “solid labor market” and “inflation above the objective.”
Meanwhile, investors seek updates on the reciprocal tariffs of President Trump, which is expected to be revealed on April 2. Investors expect the implementation of Trump’s reciprocal tariffs to be unfavorable for global economic growth.
The Swiss Franco (CHF) exceeds all pairs on Friday despite the fact that the Swiss National Bank (SNB) reduced interest rates at 25 basic points (BPS) to 0.25% on Thursday. The president of the SNB, Martin Schlegel, declared after the policy decision that the perspectives for Swiss inflation are uncertain due to the weakest economic growth at the global level and a possible increase in the value of the CHF.
US dollar FAQS
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values that overcome in new purchases. It is usually positive for the US dollar.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
