USD/CHF falls to near 0.7850 as US Dollar weakens despite safe-haven demand

USD/CHF remains subdued for the second successive day, trading around 0.7840 during the Asian hours on Monday. The pair struggles as the US Dollar (USD) extends its losses despite increased safe-haven demand.

The downside in the Greenback could be restrained as the ceasefire comes under strain, with Israel and Hezbollah escalating attacks despite a US-brokered extension meant to halt fighting for three weeks.

US President Donald Trump called off that delegation to Pakistan to potentially discuss directly with Iran. Trump on Saturday told Jared Kushner and Steve Witkoff to skip the trip to Pakistan, which is mediating talks, saying that Iran “offered a lot, but not enough. Iranian President Masoud Pezeshkian stated that his nation won’t enter “imposed negotiations under threats or blockade.”

Bloomberg reported on Monday that Iran gave the US a new proposal to reopen the Strait of Hormuz and end the war, which includes putting off nuclear negotiations. The plan called for extending the ceasefire so both countries can work toward a permanent end to the fighting.

Swiss National Bank (SNB) Chairman Martin Schlegel said at the SNB’s General Meeting that the central bank remains open to policy adjustments and FX intervention, reaffirming its willingness to purchase foreign currencies to weaken the Swiss Franc (CHF). Schlegel added that Switzerland’s outlook has become more uncertain, with muted near-term growth and rising inflation expected as energy costs increase.