The Swiss Franc strengthens against the US Dollar as geopolitical tensions ease over a potential deal to reopen the Strait of Hormuz.
USD/CHF declined for a second straight session, trading near 0.8080 in Asian hours as the US Dollar weakened. Reduced safe-haven demand followed reports of a potential interim agreement between the US, Iran, and Oman to reopen the Strait of Hormuz, a key global energy chokepoint handling nearly 20% of oil supply.
The proposed 60-day arrangement could ease supply concerns, though the US Dollar found minor support from a rebound in the 10-year Treasury yield, which dipped to 4.61% on Tuesday. Falling energy prices had earlier cooled inflation fears, reducing expectations of aggressive Federal Reserve action.
Fed’s Schmid reinforced a hawkish stance, citing AI-driven inflation risks and describing current policy as insufficiently tight to meet the 2% inflation target.