Swiss Franc steadies against US Dollar amid market caution
USD/CHF remains flat for the second successive day, hovering around 0.8100 during the Asian hours on Monday. The pair moves little as the US Dollar (USD) remains calm amid market caution following the latest military clashes between the United States (US) and Iran and its temporary truce.
Investors remain highly sensitive to breaking news from the Middle East as they continually re-evaluate the region's stability and broader influence on global risk sentiment. The friction began on Thursday when an unidentified projectile struck a cargo vessel, prompting both nations to trade blame for violating an interim ceasefire originally established on June 17.
Washington and Tehran agreed to a temporary truce ahead of crucial peace talks in Doha to negotiate a formal end to the hostilities, easing the geopolitical anxieties that had briefly unnerved global markets.
The Swiss Franc (CHF) struggles against the US Dollar as a temporary US-Iran truce eased safe-haven demand, keeping the USD/CHF pair stable. The Swiss National Bank (SNB) held its policy rate at 0% for a fourth consecutive meeting, noting the stance supports price stability and growth. However, the SNB raised its inflation outlook and reaffirmed its readiness to intervene in forex markets if necessary.
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