USD/CHF edges higher on safe-haven Dollar demand, SNB intervention threat
- USD/CHF ticks up slightly as the US Dollar holds firm.
- Tensions between the US and Iran boost demand for safe-haven assets.
- Swiss National Bank remains ready to intervene against excessive Franc strength.
USD/CHF trades higher around 0.7930 on Thursday, up 0.15% on the day, as the US Dollar (USD) maintains a bullish tone amid heightened geopolitical uncertainty. The pair is supported by sustained demand for the Greenback, driven by fading hopes for a ceasefire between the United States (US) and Iran.
The US Dollar Index (DXY), which tracks the USD against a basket of major currencies, is holding near recent highs around 99.90, reflecting the currency’s resilience. Tensions have escalated after Tehran rejected US President Donald Trump’s 15-point ceasefire proposal, describing it as “extremely maximalist and unreasonable.”
According to a report from the Wall Street Journal, Iran is demanding guarantees against any resumption of hostilities, an end to Israeli strikes on Hezbollah, and greater control over the Strait of Hormuz, including the right to collect transit fees. These conditions have been deemed unrealistic by US officials, further reducing the likelihood of a near-term agreement.
In this environment, risk aversion remains elevated, supporting flows into safe-haven assets such as the US Dollar. Recent comments from Donald Trump, stating that Iranian negotiators are “begging” for a deal while urging them to “get serious”, failed to improve market sentiment, with US Equity futures remaining under pressure.
Meanwhile, monetary policy expectations continue to underpin the USD. A Reuters poll shows that a majority of economists expect the Federal Reserve (Fed) to keep interest rates within the 3.50%-3.75% range at least until September, although rate cuts are still anticipated later this year amid persistent inflation.
On the Swiss side, the Swiss Franc (CHF) remains broadly stable against its major peers. However, the Swiss National Bank (SNB) has reiterated its readiness to intervene in foreign exchange markets to curb excessive appreciation of the currency. SNB Chair Martin Schlegel stated that the central bank has increased its willingness to act to limit sharp Franc gains.
Overall, the combination of a resilient US Dollar supported by safe-haven demand and a vigilant Swiss monetary policy backdrop keeps USD/CHF biased to the upside in the near term.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.22% | 0.23% | 0.08% | 0.24% | 0.51% | 0.47% | 0.17% | |
| EUR | -0.22% | 0.00% | -0.17% | 0.02% | 0.29% | 0.25% | -0.06% | |
| GBP | -0.23% | -0.00% | -0.15% | 0.01% | 0.29% | 0.24% | -0.06% | |
| JPY | -0.08% | 0.17% | 0.15% | 0.15% | 0.43% | 0.37% | 0.08% | |
| CAD | -0.24% | -0.02% | -0.01% | -0.15% | 0.28% | 0.23% | -0.07% | |
| AUD | -0.51% | -0.29% | -0.29% | -0.43% | -0.28% | -0.04% | -0.32% | |
| NZD | -0.47% | -0.25% | -0.24% | -0.37% | -0.23% | 0.04% | -0.30% | |
| CHF | -0.17% | 0.06% | 0.06% | -0.08% | 0.07% | 0.32% | 0.30% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).