The Swiss franc (CHF) is unchanged against the US dollar (USD) on Friday, reversing some of its earlier gains as the dollar weakens slightly from intraday highs. At the time of writing, the USD/CHF rate is around 0.7878, after briefly touching 0.7900.
Meanwhile, the US Dollar Index (DXY), which tracks the value of the dollar against a basket of six major currencies, is trading near 99.54 after rebounding from an intraday high of 99.79.
Despite the slight decline in the dollar, it remains almost 0.30% during the day, limiting further selling pressure on USD/CHF. However, the franc remained relatively mighty across the board on Friday, outperforming most major peers, although lagging the US dollar, which has sparked renewed demand since the escalation of the US-Israel war with Iran.
The Swiss franc initially strengthened following the outbreak of conflict in the Middle East, supported by demand for secure markets. However, gains quickly faded after the Swiss National Bank (SNB) signaled its willingness to intervene in the currency market, prompting traders to reduce their long CHF positions.
Geopolitical tensions in the Middle East continue to dominate market sentiment, and narrow signs of de-escalation augment the risk of a prolonged conflict. The latest findings show that on Friday, the Wall Street Journal (WSJ), citing US officials, reported that the Pentagon was deploying three warships and thousands of additional marines to the region.
The report comes as President Donald Trump previously indicated that the US would avoid deploying ground troops in Iran.
This keeps oil and, more broadly, energy prices high. Since oil is denominated in USD, rising energy prices tend to augment demand for the dollar. At the same time, the dollar remains the preferred safe-haven currency during periods of market stress as investors seek liquidity and stability, which will further strengthen its strength.
Markets also digested the monetary policy decisions made this week by the Federal Reserve (Fed) and the Swiss National Bank (SNB). Both central banks left interest rates unchanged, with the Fed keeping its reference rate in the range of 3.50%-3.75% and the SNB keeping its key interest rate at 0.00%, in line with market expectations. Policymakers also drew attention to the growing risk to the economic outlook resulting from the ongoing US-Israel war with Iran.
As for the future, the prospects for both economies are different. In the U.S., higher oil prices could push up inflation, making it harder for the Fed to cut interest rates and supporting expectations that rates could stay elevated for longer. Inflation is already low in Switzerland and the mighty Swiss franc helps reduce import price pressures, reducing the need for policy tightening.
Today’s US dollar price
The table below shows the current percentage change of the United States Dollar (USD) against the major listed currencies. The US dollar was strongest against the Japanese yen.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.19% | 0.64% | 0.97% | -0.22% | 0.83% | 0.66% | -0.03% | |
| EUR | -0.19% | 0.44% | 0.81% | -0.41% | 0.64% | 0.45% | -0.19% | |
| GBP | -0.64% | -0.44% | 0.36% | -0.85% | 0.19% | 0.02% | -0.66% | |
| JPY | -0.97% | -0.81% | -0.36% | -1.16% | -0.14% | -0.30% | -0.96% | |
| BOOR | 0.22% | 0.41% | 0.85% | 1.16% | 1.04% | 0.87% | 0.19% | |
| AUD | -0.83% | -0.64% | -0.19% | 0.14% | -1.04% | -0.17% | -0.85% | |
| NZD | -0.66% | -0.45% | -0.02% | 0.30% | -0.87% | 0.17% | -0.68% | |
| CHF | 0.03% | 0.19% | 0.66% | 0.96% | -0.19% | 0.85% | 0.68% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select the US dollar from the left column and move along the horizontal line to the Japanese yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
