The Swiss Franc strengthens for a fourth day as fading safe-haven demand pressures the USD amid progress in US-Iran negotiations.
USD/CHF declined to 0.7820 in Asian trading Monday, extending its losing streak as the US Dollar weakened. The shift follows reports of a potential US-Iran agreement, which eased broader market concerns over inflation and Federal Reserve policy tightening.
Markets had previously priced in a 45.1% chance of a 25 basis point Fed rate hike by year-end, per the CME FedWatch tool. However, rising inflationary pressures and hawkish signals from Fed officials, including Governor Christopher Waller, may limit further USD downside.
Investors remain cautious as they assess the Fed’s future policy path, balancing geopolitical developments against persistent inflation risks.