USD/CHF rises 0.5% to 0.8126 as geopolitical risks boost safe-haven demand for the dollar despite modest DXY gains.
The Swiss Franc (CHF) fell to its lowest level against the US Dollar (USD) in over two weeks, trading at 0.8126, up 0.5% on Monday. Renewed hostilities in the Middle East, including US-Iran missile exchanges and Iran’s claim of closing the Strait of Hormuz, drove the move despite limited strength in the US Dollar Index (DXY), which rose just 0.17% to 101.13.
The CHF has struggled to attract safe-haven flows, depreciating over 5% against the USD since late February. Pressure also stems from the Swiss National Bank’s (SNB) interventions to curb franc appreciation, with recent data showing increased foreign exchange purchases. Traders remain cautious ahead of Tuesday’s US CPI data and Fed Chair testimony, which could clarify the interest rate outlook.
Oil prices climbed on supply disruption fears, adding to inflation concerns and supporting the dollar’s modest gains. The franc’s decline contrasts with typical safe-haven behavior amid heightened geopolitical uncertainty.