The Swiss franc tumbled in European trade on Thursday against a basket of major rivals, resuming losses against the US dollar and almost hitting five-week lows after Swiss inflation data.
The weak pressures on prices will likely prompt Swiss National Bank policymakers to cut interest rates in September for the third time this year.
The Price
The dollar fell 0.3% against the Swiss franc to 0.9038, with a session-low at 0.9000.
The franc closed Wednesday up 0.3% against the dollar, on track for the first profit in three days away from five-week lows at 0.9050.
Swiss Inflation
Earlier Swiss data showed consumer prices rose 1.3% y/y in June, below estimates of 1.4%.
On a monthly basis, prices were flat, below estimates of a 0.1% rise.
The data all but confirms a third Swiss interest rate cut by the SNB later this year.
The SNB
At the June 20 meeting, the Swiss National Bank voted to cut interest rates by 25 basis points to 1.25% in a surprise move for markets.
The SNB became the first major central bank in March to start the process of policy easing and rate cuts to boost the economy.
The SNB believes that local inflation has come under control, although it asserted it’ll keep monitoring the situation and intervening when needed.
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