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USD/CHF rises for a second day on safe-haven dollar demand
The pair was near 0.8320 in European trade as US Treasury yields hit fresh 24-year highs amid renewed risk-off sentiment.
USD/CHF extended gains for a second consecutive day, trading around 0.8320 during European hours on Tuesday, as the US dollar strengthened on safe-haven demand, FXStreet said.
The move was linked to reports from Xinhua News Agency that Yemen's Houthi group launched coordinated missile and drone strikes against targets in Saudi Arabia, including military bases, an oil facility, and major airports. FXStreet also noted a Houthi spokesman statement that King Khalid International Airport in Riyadh was hit, disrupting local air traffic.
FXStreet added that a significant rally in US Treasury yields supported the dollar, with yields reaching fresh 24-year highs. The outlet tied the yield surge to a broader global bond selloff tied to expanding fiscal deficits and persistent inflation pressures, and to ISM data showing input costs in the US services sector increased at the fastest pace in more than four years.
The USD/CHF gain reflects the combination of the risk-off impulse from the geopolitical headlines and the inflation-related rate repricing driving US yields, according to FXStreet.