LONDON (Reuters) – The dollar advanced as the Swiss franc and pound slipped on a busy day as central bank meetings kept currency market players alert.
At 11.22am EST, the dollar index, which tracks the currency against six other majors, was up 0.21% at 105.473 after 10 days of volatility that saw mixed signals from the US economy and European markets shaken by French political uncertainty.
Helping the US currency rise was the decline in the Swiss franc after the Swiss National Bank lowered interest rates again by 25 bps to 1.25%, following the cut made in March.
The dollar advanced 0.7% to 0.8904 francs, while the Swiss currency slipped from around three-month highs following the cut, which was accompanied by forecasts of a further decline in inflation to 1.1% in 2025.
The pound fell ahead of the Bank of England’s interest rate decision at 1pm, in which the central bank is expected to keep borrowing costs at 5.25%, a 16-year high.
The pound fell 0.15% to $1.2699, but was up from Friday’s one-month low of $1.2658.
The euro slipped again, down about 0.24% to $1.0719, but still above Friday’s six-week low of $1.0667.
The Japanese yen recorded its lowest session since April 29, when the Japanese authorities launched the latest round of interventions to support it. Not far from that level, the dollar is now trading at 158.42 yen, an increase of about 0.21%.
(Translated by Camilla Borri, editing Valentina Consiglio)
