USD/CHF attracts some sellers to near 0.8750 ahead of SNB rate decision

• USD/CHF weakens to around 0.8760 in Thursday's Asian session. 
• The Fed held its benchmark overnight rate steady in the 4.25%-4.50% range.
• The SNB is expected to cut rates by 25 bps at its March meeting on Thursday. 

The USD/CHF pair attracts some sellers to near 0.8760 during the Asian trading hours on Thursday. The Greenback edges lower after the Federal Reserve (Fed) indicated interest rate cuts were likely later this year despite the high degree of uncertainty around US tariff policies. Later on Thursday, the Swiss National Bank (SNB) interest rate decision will be in the spotlight. 

On Wednesday, the Fed kept interest rates unchanged in a range of 4.25% to 4.5% at its March meeting, as widely expected. The US central bank signaled it will cut rates two more times this year, in line with its previous projection from December. 

However, the Fed officials lowered its forecast for economic growth and revised both its inflation projection and unemployment estimates higher. This, in turn, weighs on the USD against the Swiss Franc (CHF). Traders are now pricing in nearly 66 basis points (bps) of rate cuts this year from the Fed, about two rate reductions of 25 bps each, with a cut in July fully priced in, according to the LSEG data. 

On the Swiss front, the markets expect the SNB to lower its benchmark interest rate by 25 bps to 0.25% at its policy meeting on Thursday. The decision follows a 50 bps reduction in December and comes amid subdued inflation, a strong CHF, and an uncertain global economic outlook. Nonetheless, worries about the CHF's strength remain, and the Swiss central bank could attempt to alleviate this pressure by cutting interest rates and maybe intervening in the foreign currency market.