USD/CHF Dives Close to 0.7940 Amid U.S. Government Shutdown
The USD/CHF pair slid further, reaching around 0.7940 during European trading. The drop follows fresh worries over the U.S. government entering a shutdown.
Congress failed to pass a short-term funding bill that would have pushed back the shutdown deadline to November 21. Because of this, the U.S. dollar weakened broadly. Meanwhile, the Swiss franc held firm and strengthened against the dollar.
This isn’t the first time: it’s the 15th U.S. government shutdown since 1981 and the second under President Trump. How long this shutdown lasts—and how much operations are affected—will largely decide how badly the U.S. dollar is hurt.
Adding to the franc’s strength, the Swiss National Bank (SNB) is signaling rising confidence. SNB chair Martin Schlegel said inflation pressures are expected to grow in upcoming quarters. That gives the franc added support against its peers.
Impact :
The USD/CHF might stay under downward pressure if the shutdown continues. Strong Swiss inflation data or more U.S. fiscal uncertainty could possibly worsen dollar weakness.