USD/CHF Rises as US-Iran Uncertainty Revives Dollar Safe-Haven Demand

On May 21, USD/CHF strengthened as the dollar gained amid renewed US-Iran geopolitical uncertainty, with traders favoring dollar liquidity over the franc. The pair had climbed on May 19 after strong US data prompted markets to price in a more hawkish Fed outlook, pushing the franc to multi-week lows. On May 20, initial safe-haven dollar strength gave way to weakness near 0.7877 once progress in US-Iran talks reduced risk aversion, though Fed minutes reinforced a higher-for-longer stance and EUR/USD climbed above 1.0950. The latest rebound highlights how fragile the de-escalation narrative remains.