USD/CHF continues its losing streak for the seventh successive day, trading around 0.7830 during the Asian hours on Tuesday. The pair continues to strengthen after the reports that the United States (US) and Iran may hold further talks to secure a longer-term ceasefire before the current two-week truce ends.
US President Donald Trump said that Iran had made contact and is now looking to resume negotiations. Vice President JD Vance also suggested that ongoing diplomatic efforts and a possible path toward US-Iran conflict de-escalation. Vance stated that recent discussions over the weekend were constructive, providing US officials with deeper insight into Iran’s negotiating stance.
The Swiss Franc gains support as easing oil prices increase pressure on the Swiss National Bank (SNB) to adjust policy. However, annual consumer inflation rose to 0.3% in March from 0.1% in February, the highest in a year, underscoring the impact of recent rising energy costs linked to the Middle East conflict. The SNB also reiterated its readiness to intervene to curb excessive CHF’s appreciation.
The US Dollar (USD) also faces challenges as the recent ease in oil prices fades the hawkish sentiment surrounding the Federal Reserve (Fed) policy outlook. Fed Governor Stephen Miran said the Iran-related energy shock has not yet affected long-term inflation expectations, adding he expects price pressures to return to the central bank’s target within a year.
US Treasury Secretary Scott Bessent said in a Semafor interview on Tuesday that the US should “wait and see” before cutting interest rates, adding he is confident recent price increases will not become embedded in inflation expectations.
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