The Swiss franc traded near $0.81, after reaching its lowest level since August 19th, as a more hawkish Fed outlook boosted demand for the greenback. Hawkish remarks by Fed Chair Warsh boosted markets expectations of September rate hike, supporting dollar-denominated assets. Meanwhile, a potential shift in short positions from the yen toward the Swiss franc could further weaken the currency, as traders move short positions in the yen into other relatively weaker safe-haven currencies amid recent US-Japanese efforts to strengthen the yen. A Swiss Bankers Association survey showed that all bankers expect the SNB to keep its policy rate at 0% by year-end, while 60% expect it to remain unchanged throughout 2027. Markets now anticipate the first rate hike in June 2027, later than the previous March expectation, while most economists expect the first hike in early 2028, potentially making the currency more attractive as a funding currency for carry trades.