USD/CHF edges up to near 0.7925 as US Dollar remains firm amid Middle East uncertainty
- USD/CHF ticks higher to near 0.7925 as the US Dollar continues to trade firmly.
- Iran called Trump’s 15-point plan “extremely maximalist and unreasonable”.
- The SNB could intervene against excessive appreciation in the Swiss Franc.
The USD/CHF pair ticks higher to near 0.7925 during the European trading session on Thursday. The Swiss Franc pair gains as the US Dollar (USD) holds onto gains amid growing doubts over an early ceasefire between the United States (US) and Iran, following the release of Tehran’s conditions.
During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades firmly near Wednesday’s high around 99.70.
According to a report from the Wall Street Journal (WSJ), Tehran has also called for a new order in the Strait of Hormuz that would allow it to collect transit fees, as well as guarantees that the war would not restart, an end to Israeli strikes on Hezbollah, and no interference in Tehran pursuing missile program. In response, a US official has described the demands as “ridiculous and unrealistic”.
Before Tehran’s conditions, US President Donald Trump proposes a month-long ceasefire and a 15-point settlement plan delivered through Pakistan to Iran, which was rejected by Tehran, calling it “extremely maximalist and unreasonable”, by a senior Iranian official while speaking with Al Jazeera.
The uncertainty over the outlook of the Middle East war is expected to keep underpinning the demand for safe-haven assets, such as the US Dollar.
Meanwhile, the Swiss Franc (CHF) trades almost flat against its major currency peers, while the Swiss National Bank (SNB) has expressed readiness to intervene in foreign markets against excessive appreciation in the domestic currency.
SNB Chairman Martin Schlegel said in his press conference post the monetary policy announcement, “We have increased our readiness to intervene in forex markets to dampen rapid Swiss Franc appreciation."
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