Geopolitical uncertainty and Fed hawkishness drive the USD higher, pushing USD/CHF to 0.7870 in Asian trading.
USD/CHF climbed to 0.7870 during Asian trading on Thursday, recovering from modest losses the prior day. The pair gained as the US Dollar strengthened amid escalating US-Iran tensions and hawkish signals from the Federal Reserve.
Earlier, optimism emerged after reports suggested US-Iran negotiations were nearing completion, raising hopes for the reopening of the Strait of Hormuz. However, renewed threats from President Trump to resume military action if Iran rejects terms reversed sentiment. Iranian President Masoud Pezeshkian dismissed coercion as ineffective.
The Fed’s April meeting minutes reinforced expectations of potential rate hikes if inflation persists above the 2% target, further supporting the USD. Traders remain cautious as geopolitical risks and monetary policy shifts dominate market focus.