The safe-haven Dollar slipped on Thursday as risk appetite grew, with traders anticipating speeches from key Federal Reserve policymakers and economic data later in the day for insights into the timing of interest rate cuts.

In contrast, the Swiss Franc strengthened following the Swiss National Bank's (SNB) 25 basis point rate cut. Future markets and some analysts had predicted a larger cut of 50 basis points, especially after the Federal Reserve implemented a similar reduction last week, Reuters reports.

The Dollar made a strong recovery overnight from its lowest levels in over 14 months. It had fallen sharply on Tuesday following data indicating that US consumer confidence experienced its largest decline in three years for September, driven by growing concerns about the labour market, which led to increased market speculation regarding Fed rate cuts.

“Beijing has juiced the markets during what was otherwise a typically quiet day ahead of US data,” said Matt Simpson, senior market analyst at City Index.

The Dollar index, measuring the greenback against six major rivals, dipped 0.1% to 100.78 at the time of writing, following a 0.57% rise on Wednesday, the largest one-day gain since 7th June.

“Our view is that the Fed will lower rates at a faster pace than its peers. This will continue to chip away at the US Dollar's yield advantage, a key support for the currency over the past two years,” according to Mark Haefele, chief investment officer at UBS Global Wealth Management.

Elsewhere, the Swiss Franc gained 0.14% against the Dollar, reaching 0.8492, and increased by 0.11% to 0.9457 against the Euro. 

Markets had priced in a 55% likelihood of a 25-basis point cut prior to the announcement. 

SNB Chairman Thomas Jordan stated that the central bank is prepared to lower interest rates again and recently recognised the challenges that the Franc's recent appreciation has posed for exporters.

Furthermore, the Euro remained relatively stable at $1.1136, having sharply declined from $1.1214, which was its highest level since July last year.