The Swiss franc fell sharply against the dollar on Thursday after the US Federal Reserve's 25 basis points interest rate boosted the greenback across the board. The franc was some 0.3 percent lower against the dollar at 1.1620 francs per dollar, as the dollar recovered from a new multi-year low hit against the franc in the previous session.
"We expect the franc to be rather weaker against the dollar," said a trader at Zuercher Kantonalbank. "The market sentiment has changed after the Fed's decision," he said. The Fed's quarter-point rate cut had been widely expected and the US central bank moderated expectations for further cuts in short-term rates, supporting the dollar.
Against the euro, the franc was slightly stronger at 1.6776 francs per euro, as traders see the recent comments from the Swiss National Bank supporting the franc. Earlier this week, SNB Chairman Jean-Pierre Roth said the bank would have to raise interest rates if the weakness of the Swiss franc put price stability in danger, repeating earlier warnings.