Rising US Treasury yields and Fed hawkishness expectations lift the Dollar against the Swiss Franc near 0.7860.
The USD/CHF pair climbed to 0.7860 in Asian trading Tuesday, recovering from prior losses as the US Dollar strengthened on expectations of a more hawkish Federal Reserve. The 10-year US Treasury yield surged to 4.659%, its highest since February 2025, before settling at 4.601%, reflecting concerns over inflationary pressures from rising energy costs.
Market focus remains on the Fed’s response to inflation, with traders assessing new Chair Kevin Warsh’s approach amid political scrutiny. Improved risk sentiment briefly weighed on the Dollar after the US delayed a military strike on Iran, though geopolitical tensions persist.
The Swiss Franc’s weakness follows the Dollar’s broad support, driven by shifting Fed policy expectations and Treasury yield movements.