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27/04/26
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USD/CHF Extends Decline as Dollar Weakens and Safe-Haven Demand Persists
USD/CHF remained under pressure for a second straight session on Monday, trading near 0.7840 during Asian hours as the US Dollar continued to weaken. The pair has failed to gain traction even as geopolitical tensions have supported demand for safe-haven assets.
The Greenback’s losses may be limited by the fragile nature of the regional ceasefire. Fighting has continued to escalate between Israel and Hezbollah, despite a US-brokered extension intended to hold hostilities in check for three weeks. That backdrop has kept risk sentiment cautious, but it has not been enough to restore broad support for the Dollar.
Tensions in the Middle East also intensified after President Donald Trump canceled a planned delegation to Pakistan that had been expected to explore possible direct talks with Iran. Trump reportedly asked Jared Kushner and Steve Witkoff not to make the trip, while Iran’s President Masoud Pezeshkian said his country would not accept negotiations conducted under threats or blockade. The remarks added to uncertainty around diplomatic efforts to contain the conflict.
At the same time, Bloomberg reported that Iran had presented the United States with a new proposal aimed at reopening the Strait of Hormuz and ending the war. The plan reportedly included postponing nuclear negotiations, while both sides would work toward a permanent end to the fighting. If confirmed, such a move could ease some pressure in the region, although the outlook remains highly uncertain.
The Swiss Franc has also remained firm after Swiss National Bank Chairman Martin Schlegel said the central bank is prepared to adjust policy and intervene if needed to limit CHF strength. He said the SNB remains willing to buy foreign currencies if necessary, while also warning that Switzerland faces a more uncertain economic outlook. Schlegel pointed to subdued near-term growth and a possible rise in inflation as energy costs increase.
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