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USD/CHF falls near 0.8000 as US Treasury bond buybacks rise
The US Treasury pledged to at least double longer-dated debt buybacks, potentially exceeding $4 billion, while the Swiss National Bank kept its policy rate at 0% and signaled readiness to limit excessive franc strength.
FXStreet reports USD/CHF reversed recent gains and slid during Asian hours on Monday, trading around 0.8000. The move comes as the US dollar faces pressure tied to newly announced US fiscal measures.
According to FXStreet, the US Treasury Department pledged to at least double buybacks of longer-dated government debt to help curb rising bond yields, with Treasury Secretary Scott Bessent indicating the program could exceed $4 billion. Analysts at ING said the shift toward supporting the Treasury market can be viewed as “risk-positive,” while expecting volatility to remain low and interest rates to stay firm for carry trade strategies.
FXStreet adds that downside in the greenback may be limited by safe-haven demand as geopolitical tensions in the Middle East escalated. It cites Iranian officials dismissing upcoming US sanctions and warning of potential “earthquake-like” retaliation if President Donald Trump takes further action.
On the Swiss side, FXStreet says the Swiss National Bank kept its policy rate at 0% and is expected to maintain that stance through 2027, with readiness to intervene to curb excessive franc appreciation. The article notes market pricing for a potential rate hike as early as March 2027, and it characterizes USD/CHF technicals as bearish while price stays below key moving averages.