The U.S. Dollar-Swiss Franc (USD/CHF) pair extended its losing streak into a third consecutive session on Friday, sliding to a two-month low of 0.8056 during Asian trading hours. The pair is currently hovering around 0.8070 as investors continue to favor the safe-haven Swiss Franc amid rising geopolitical tensions.
The downturn in USD/CHF follows a surge in global risk aversion triggered by intensifying conflict in the Middle East. Israeli military forces launched preemptive strikes on dozens of targets across Iran, citing the Iranian nuclear program as an existential threat. Israeli Defense Minister Israel Katz warned of likely retaliatory missile and drone attacks and declared a special state of emergency, according to Axios.
Further heightening uncertainty, U.S. Secretary of State Marco Rubio clarified Washington’s stance in a public statement: “Tonight, Israel took unilateral action against Iran. We are not involved in strikes against Iran, and our top priority is protecting American forces in the region.” He added that the administration is in close communication with regional partners and warned Tehran not to target U.S. interests or personnel.
Broader Risk-Off Mood Adds to Dollar Weakness
Market sentiment took another hit following former U.S. President Donald Trump’s announcement of expanded tariffs on imported steel derivative products, effective June 23. The measure includes a range of household appliances such as dishwashers, washing machines, and refrigerators. Initially imposed at 25% and later raised to 50%, this marks the second expansion of the product scope, fueling investor concerns over deepening trade frictions.
With geopolitical and trade-related risks mounting, investors are increasingly seeking shelter in traditional safe-haven assets like the Swiss Franc, putting continued pressure on the U.S. Dollar.
Unless geopolitical tensions ease or risk sentiment improves, the USD/CHF pair could remain under downward pressure, with traders closely monitoring further developments in the Middle East and U.S. economic policy announcements.
