The Swiss Franc has tumbled to a 13-month low against the US Dollar on Thursday, with USD/CHF reaching its strongest level since June 2025. The decline comes as escalating Middle East conflict drives crude oil prices sharply higher, fueling inflation concerns that are reinforcing expectations for Federal Reserve rate hikes. The greenback is gaining broadly across currency markets as traders reassess the Fed’s monetary policy trajectory in light of rising energy costs. The oil price surge threatens to complicate the Fed’s inflation battle, potentially forcing policymakers to maintain or increase restrictive rates longer than previously anticipated. Safe-haven demand that typically benefits the Swiss Franc is being overshadowed by dollar strength, with the USD/CHF pair breaking through key resistance levels. Currency traders and brokers should monitor oil price movements and Fed commentary closely as these factors continue driving major currency pair volatility.
FXnCO Insight
Dollar longs remain favored across G10 currencies while oil prices stay elevated and Fed rate cut expectations diminish.
Source: FXStreet