Safe-haven flows into the USD push USD/CHF higher amid escalating US-Iran tensions and persistent inflation concerns.
USD/CHF climbed to 0.7890 in Asian trading, extending gains for a second day as demand for the US Dollar surged. The move follows reports of renewed US threats against Iran, heightening geopolitical risks and stoking inflation fears through higher energy prices.
The pair remains supported by expectations that the Federal Reserve may keep interest rates elevated or even tighten further. US Treasury yields stayed near multi-year highs, with the 10-year yield at 4.687% and the 2-year at 4.139%, reflecting concerns over prolonged inflation.
Switzerland’s economy grew 0.5% quarter-on-quarter in Q1, up from 0.2% in the prior period, marking its strongest performance in recent quarters. The data had limited impact on the CHF as broader risk sentiment dominated.