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11/05/26
15
USD/CHF Holds Near 0.779 as Dollar Gains on Risk-Off Mood
The USD/CHF pair traded near 0.779 in Asian hours on Monday, holding modest opening gains as the US dollar strengthened against major peers. The move reflected a renewed risk-off tone in global markets after signs emerged that the latest US-Iran peace talks are unlikely to produce an immediate breakthrough.
The dollar’s advance was supported by softer sentiment in equities. The US Dollar Index rose about 0.25% to around 98.1, while S&P 500 futures slipped 0.15% to 7,390, pointing to a cautious market backdrop. In this environment, investors have continued to favor the greenback over the Swiss franc.
Over the weekend, US President Donald Trump rejected Iran’s response to Washington’s peace proposal, calling it unacceptable. Reports from Iranian state media indicated that Tehran is seeking US compensation for war-related damage, recognition of its authority near the Strait of Hormuz, the release of frozen assets, and an end to sanctions. The Strait of Hormuz remains a strategic chokepoint for global energy shipments, and any prolonged tension there tends to support oil prices and lift geopolitical risk premiums.
The failure to secure a quick agreement has also fueled concern over higher energy costs. Crude prices have risen on reduced expectations for an imminent ceasefire, adding to market unease. At the same time, stronger-than-expected April nonfarm payrolls have reinforced speculation that the Federal Reserve may still consider another rate increase later this year, providing additional support for the dollar.
Attention is now shifting to Trump’s planned visit to China from May 13 to May 15. Market participants expect discussions to focus in part on Beijing’s potential role in easing tensions with Iran and limiting disruption to energy flows through the Gulf region. That prospect will remain an important factor for currency and commodity markets in the days ahead.
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