The Swiss franc strengthened on Thursday after the Swiss National Bank (SNB) cut its benchmark rate for a third time by just 25 basis points (bps).

The SNB echoed steps to lower borrowing costs taken by the European Central Bank and US Federal Reserve earlier this month. The dollar was down 0.11% versus the Swiss franc at 0.8497. It had traded up 0.1% before the SNB announcement.

It hit 0.8375 on Sept. 6, its lowest level since late December 2023.

The euro was flat at 0.9473 compared with a 0.26% daily gain before the SNB decision.

US Fed set to make first rate cut since 2020

A significant bulk of economists polled by Reuters forecast 25 a basis points (bps) cut, with a slight majority of whom saying the SNB would hold in December.

Futures markets however had been evenly split on whether the SNB would cut by 25 bps or go with a 50-bp cut.