Dollar hovers near 2-month peak, Swiss franc falls, Norwegian crown rises
SPY•The dollar held near a two-month high as markets weighed the US rate outlook. The Swiss franc fell after Switzerland held rates steady, while Norway’s crown rose after its central bank raised rates by 25 basis points to 4.50%.
1. Currency moves
The dollar index was roughly unchanged at 101.12 after rising 0.56% on Wednesday to its highest level since July 29. The euro fell to a two-month low of $1.1369, while the dollar was little changed against the yen at 158.38 after reaching its highest level since September 3.
2. Central bank decisions
The Swiss National Bank kept rates unchanged and reiterated its willingness to act in foreign exchange markets. The franc fell 0.32% against the dollar to 0.828, its lowest level since May 2025. Norway’s central bank raised its policy rate by 25 basis points to 4.50% and said it may raise rates again; the crown rose 0.57% against the dollar to 9.457.
3. Rate outlook
Two-year Treasury yields reached their highest level since May 2024 after strong US business activity data renewed inflation concerns. The Swedish central bank held its key rate at 1.75%, while flagging stronger growth and the risk of higher inflation in coming months.
