The pair climbs 0.20% to 0.8026 as US sanctions on Iran and Treasury bond buybacks support the dollar amid geopolitical tensions.
USD/CHF trades higher at 0.8026, up 0.20% on Monday, as the US dollar stabilizes following last week’s sell-off. The recovery follows the US Treasury’s announcement to increase longer-dated bond buybacks, which eased some fiscal concerns but revived debt worries.
The US Dollar Index (DXY) rebounds to 99.05 after hitting a three-month low of 98.56 last week. Softer US employment and inflation data for July have tempered expectations for near-term Federal Reserve rate cuts, though geopolitical risks remain elevated.
Market focus shifts to US-Iran tensions after Washington imposed fresh sanctions on 60 Iran-linked entities. Tehran has threatened to disrupt oil exports through the Strait of Hormuz, adding upward pressure on the dollar as a safe-haven asset.