The U.S Treasury has stated that although no major trading partner manipulated exchange rates up to June this year, it would stay in close contact with Switzerland in regard to its currency practices.

In the Treasury’s semi-annual report, it was noted that Switzerland again surpassed U.S. thresholds for potential currency manipulation under a trade law from 2015. However, it was not branded a currency manipulator.

Switzerland's macroeconomic and exchange rate policies would continue to be analysed, the report adds, whilst initiating a bilateral engagement that was introduced at the beginning of last year in regard to Swiss policy options for tackling external imbalances, Reuters news agency reports.

On Thursday, the Swiss National Bank (SNB) stated in response that it has taken on board the latest foreign exchange policies report undertaken by the U.S. Treasury, going on to say it has stayed in contact with its U.S. counterparts to clarify Switzerland's position.

In a statement, the central bank said: “Together with the Swiss authorities, the SNB remains in contact with the U.S. authorities to explain Switzerland's economic situation and monetary policy. We welcome these ongoing discussions.”

“Switzerland and the U.S. are important economic partners. They enjoy excellent bilateral relations and are in regular contact regarding financial and economic matters,” the Swiss National Bank added.

In addition, according to a senior Treasury official, the strength of the Dollar against other currencies could start to ease as Fed tightening peaked and other central banks caught up.

“The global economy was already dealing with supply and demand imbalances caused by COVID-19 prior to Russia's illegal war against Ukraine, which has increased food, fertilizer, and energy prices - further elevating global inflation and increasing food insecurity,” said Treasury Secretary Janet Yellen.

“Treasury is cognizant that a range of approaches by developing and emerging economies to global economic headwinds may be warranted in certain circumstances,” she continued.