The Swiss franc weakened on Thursday against the dollar and the euro after the Swiss National Bank (SNB) raised interest rates by 25 basis points, defying market expectations for a larger increase.
The Swiss franc fell 0.2% to 0.8945 versus the dollar after the SNB decision, moving away from a six-week high touched against the greenback last week.
The euro rose as much as 0.28% against the franc to a session high of 0.9838 francs and last traded at 0.9832 francs.
Despite lower Swiss inflation, currently the lowest among G10 economies at 2.2%, SNB Chairman Thomas Jordan recently reiterated his readiness to raise rates, leading markets to anticipate a 50 basis point hike.
Prior to the central bank announcement, money markets were pricing in a 62% chance of a 50 bp SNB increase.
