USD/CHF Rebounds, Focus Shifts to Global Tariffs
USD/CHF strengthened near 0.7760 during the Asian session on Tuesday (February 24th), following the US dollar's continued recovery since Monday night. This movement occurred as markets began to assess that the uncertainty stemming from the US Supreme Court's ruling on President Donald Trump's tariff policies was unlikely to last long.
Meanwhile, the US Dollar Index (DXY)—which measures the USD's performance against six major currencies—moved slightly higher to around 97.75. This slight gain provided additional support for USD/CHF, although defensive flows into the Swiss franc still limited the pair's room for movement.
On Friday, the US Supreme Court overturned Trump's tariff policies, declaring his use of powers under the Economic Emergency Act to support import duty increases to be "unlawful." However, some market participants believe Washington has various options to maintain its tariff policies through other channels, so the impact of the ruling is expected to be more temporary.
In response to the ruling, Trump announced plans for 15% global tariffs and warned that countries deemed to be "playing around" with trade agreements could face higher tariffs. Meanwhile, the CHF remained stable amidst risk-off sentiment due to uncertainty over US trade policy and US-Iran tensions, with market focus on the continuation of US-Iran nuclear talks scheduled for Thursday. (alg)
Source: Newsmaker.id
