USD/CHF Drops for Seventh Day, Signals US-Iran Talks Pressure Dollar
USD/CHF continued its decline for the seventh consecutive day. The currency traded around 0.7830 during the Asian session on Tuesday (April 14), remaining below 0.7850. The dollar's decline occurred as markets assessed the likelihood that further talks between the United States and Iran could lead to a longer ceasefire before the current two-week ceasefire expires.
US President Donald Trump said Iran had made contact and wanted to continue negotiations. On a separate occasion, Vice President JD Vance also signaled that diplomacy was still active and that a de-escalation of the conflict was possible, saying the weekend discussions were constructive and gave US officials a deeper understanding of Iran's bargaining position.
In Switzerland, the franc received support as falling oil prices increased pressure on the Swiss National Bank (SNB) to adjust policy. However, Swiss annual inflation rose to 0.3% in March from 0.1% in February, the highest in a year. This reflected the effects of previously rising energy costs related to the Middle East conflict. The SNB also reiterated its readiness to intervene to curb what it deemed excessive franc appreciation.
For the US dollar, easing oil prices have helped reduce hawkish sentiment regarding the Federal Reserve's policy outlook. Fed Governor Stephen Miran stated that the Iran-related energy shock has not yet affected long-term inflation expectations, and he expects price pressures to return to near the central bank's target within a year.
Regarding fiscal policy and market guidance, US Treasury Secretary Scott Bessent said the US should "wait and see" before cutting interest rates and expressed confidence that the latest price increases would not be embedded in inflation expectations. The combination of de-escalation hopes, oil dynamics, and policy signals has kept USD/CHF under pressure, with market focus on the direction of US-Iran negotiations, the SNB's response to the franc, and further communication from the Fed and the US government regarding inflation and interest rates. (asd)
Source: Newsmaker.id
