One-month risk reversals on USD/CHF, a gauge of calls to puts, fell sharply from -0.50 to -1.20 on Thursday, indicating increased demand for puts, a sign of investors adding bets to position for strength in the Swiss Franc (CHF).
Risk reversals slipped as the US Treasury Department branded Switzerland as a currency manipulator. That limits the nation's ability to stem the currency's rise.
Switzerland was on US Treasury's radar after spending 90 billion Swiss francs ($101.50 billion) on foreign currency intervention in the January to June period.
The Swiss franc rallied to a six-year high of 0.8826 on Wednesday and was last seen trading near 0.8850.
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