USD/CHF HOLDS GAINS NEAR 0.8150, HOVERS NEAR MULTI-YEAR LOWS DUE TO SAFE-HAVEN DEMAND
USD/CHF HOLDS GAINS NEAR 0.8150, HOVERS NEAR MULTI-YEAR LOWS DUE TO SAFE-HAVEN DEMAND
The USD/CHF currency pair is attempting to recover from recent losses, trading around 0.8160 during Thursday's Asian session.
it remains close to the 0.8099 mark—its lowest level since September 2011, touched on April 11.
The Swiss franc's strength is attributed to increased demand for safe-haven assets amid global economic uncertainties and trade tensions.
On April 11, 2025, the U.S. dollar experienced a significant decline across major currencies, driven by declining investor confidence in U.S. assets and concerns about ongoing tariff disputes, particularly with China.
The dollar hit a decade-low against the Swiss franc and a three-year low versus the euro.
China's announcement to raise tariffs on U.S. goods to 125% exacerbated fears of a prolonged trade conflict, contributing to a global sell-off that affected not only equities but also U.S. Treasuries, whose yields rose sharply.
The Swiss franc is considered a safe-haven currency due to Switzerland's political stability, low inflation, and strong legal framework.
It is heavily demanded in times of crisis, evidenced by the financial surge after 2008.
Investors often seek CHF exposure through ETFs, forex accounts, or currency derivatives.
