USD/CHF revisits two-month high near 0.7960 amid doubts on Mideast optimism

USD/CHF rises to near the two-month high of around 0.7960 amid broader risk-off sentiment.
US President Trump postponed planned military attacks on Iran’s power plants again.
Peace talks mediators signal that Iran won’t agree to Trump’s 15-point settlement plan.

Sagar Dua FXStreet

The USD/CHF pair reclaims the two-month high of 0.7960 during the Asian trading session on Thursday. The Swiss Franc pair trades firmly as the US Dollar (USD) strengthens amid increasing doubts over United States (US) President Donald Trump’s claims that negotiation talks with Iran are going “very well”.

During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, holds onto two-day gains around 100.00.

Late Thursday, US President Trump announced in a post on Truth.Social that he is postponing planned military strikes on Iran’s power plants again at the request of Iranian officials, and talks with them are going very well. According to the post, Trump has paused Iranian energy plant destruction plans by 10 Days to Monday, April 6, 2026, at 8 P.M., Eastern Time.

Contrary to Trump’s post, peace talks mediators have stated that Iranian officials have not made any request and are unlikely to agree to Trump’s 15-point settlement plan, which calls for the reopening of the Strait of Hormuz and restricts Tehran from pursuing its missile program.

In addition to Middle East conflicts, speculation that the Federal Reserve (Fed) will not cut interest rates this year has also offered strength to the US Dollar. According to the CME FedWatch tool, traders have fully priced in that the Fed will hold interest rates steady or deliver at least one hike this year, a sharp turnaround from two interest rate cuts projected before the war started.

Meanwhile, the Swiss Franc (CHF) is slightly under pressure due to continuous warnings of intervention by the Swiss National Bank (SNB) against excessive appreciation in the domestic currency. Last week, SNB Chairman Martin Schlegel said in the post-policy announcement press conference that the readiness of the central bank to intervene against the excessive Swiss Franc’s rally has increased.

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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