Escalating US-Iran tensions and higher US bond yields drive demand for the USD, pressuring the Swiss Franc near 0.8150.
USD/CHF climbed to 0.8150 during European trading, marking a fourth consecutive day of gains. The pair advanced as the US Dollar rebounded amid heightened geopolitical risks, particularly between the US and Iran. US officials warned of potential military escalation if Iran refuses negotiations, while Tehran threatened retaliation over recent strikes on Iranian-linked energy assets.
Switzerland’s 10-year government bond yield rose to near 0.49%, a two-month high, as Middle East tensions and rising energy costs fueled inflation concerns. Despite this, the Swiss Franc struggled to gain traction, with safe-haven flows favoring the USD. Iran-backed Houthi militants also targeted Saudi oil tankers in the Red Sea, raising risks to global crude supply routes.