Geopolitical tensions and hawkish Fed signals lift the Dollar, keeping the pair near 0.8080 amid Swiss Franc weakness.
USD/CHF traded around 0.8080 in Asian hours Monday, extending a four-day rally near its highest level since November. The Dollar gained support from safe-haven flows as US-Iran tensions escalated, with President Trump threatening strikes on Iran if Hezbollah attacks Israel persist.
The pair peaked at 0.8091 on June 19, reflecting broad USD strength. The Federal Reserve’s hawkish stance, with nine of 19 policymakers projecting at least one rate hike this year, further bolstered the Greenback. Markets now price in a potential September increase.
Swiss National Bank President Martin Schlegel reiterated readiness to intervene in currency markets, though the Franc remained subdued. Iran’s closure of the Strait of Hormuz and suspended negotiations added to risk aversion.