The pair climbed to 0.7960 in Asian trading after US forces intercepted Iranian drones near the Strait of Hormuz.
USD/CHF advanced to 0.7960 during Asian hours Friday, recovering from over 0.5% losses the prior day. The US Dollar strengthened as renewed risk aversion gripped markets following fresh military tensions in the Middle East.
Earlier, US forces shot down two Iranian attack drones near the Strait of Hormuz after they targeted commercial vessels. Iran’s state media attributed explosions in Sirik to a confrontation with a vessel violating waterway rules. The risk-off sentiment eased after President Trump suggested a peace deal with Iran could be finalized this weekend.
The proposed agreement aims to reopen shipping lanes in the Strait of Hormuz and secure Iran’s commitment to abandon its nuclear weapons program. Iran’s Fars news agency indicated Tehran may accept the terms pending formal approval.