USD/CHF maintains its position at a nearly seven-month peak of 0.8091. The US Dollar gains support as a renewed US-Iran peace deal elevates safe-haven demand. The SNB will engage in the sale of Swiss Francs should a swift appreciation pose a risk to price stability. USD/CHF remains stronger for the fourth consecutive day, trading around 0.8080 during the Asian hours on Monday. The pair remains close to a nearly seven-month high of 0.8091, reached on June 19, as the US Dollar receives support from safe-haven demand, which could be attributed to renewed concerns over a US-Iran peace deal.
As reported on Sunday that US President Donald Trump issued a warning of direct strikes on Iran should Hezbollah persist in its assaults on Israel. This warning has significantly obscured the prospects for diplomatic advancement between Washington and Tehran, effectively dismantling the existing peace framework, even as Vice President JD Vance engaged with Iranian officials for the initial round of discussions under an interim agreement. Meanwhile, Tehran concurrently declared the renewed closure of the strategic Strait of Hormuz.
While Iranian state media reported that Tehran had completely suspended negotiations in response to Trump’s remarks, sources close to the matter indicated that discussions are quietly ongoing. Moreover, the Greenback receives support as the Federal Reserve adopted a decidedly hawkish tone after maintaining interest rates at their current level last week. Notably, 9 out of 19 Fed policymakers now project at least one interest rate hike this year, with market investors pricing in a potential increase as early as September.
Swiss National Bank President Martin Schlegel reaffirmed the central bank’s readiness to intervene in the foreign exchange market, stating they will sell Swiss francs if rapid appreciation threatens price stability. With inflation staying within the 0–2% target range and limited upward pressure anticipated, the SNB maintained its policy rate for the fourth consecutive meeting, signalling no immediate intentions to tighten policy.