09/07/26

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USD/CHF extended its decline for a second straight session on Thursday, holding near 0.8070 in Asian trading as the US Dollar softened after the release of the Federal Reserve’s latest meeting minutes. The tone of the minutes suggested that policymakers remain divided over the direction of rates, adding uncertainty to the outlook for the dollar.

During the June 16-17 meeting, officials appeared split between those who expect the benchmark rate to end the year around its current 3.6% level or slightly lower, and those who believe additional tightening may still be needed before year-end. The disagreement has reinforced the view that the Fed may keep borrowing costs elevated for longer in order to contain persistent inflation pressures.

Market pricing has already begun to reflect that possibility. CME FedWatch data indicate that traders now see more than a 30% chance of a rate increase at the next Fed meeting, up sharply from less than 20% a week earlier. That shift has helped limit the dollar’s losses, even as broader expectations for near-term Fed policy remain unsettled.