• USD/CHF rises to its highest level since June 25 amid renewed tensions in the Middle East.
• The Swiss Franc underperforms as SNB intervention risks offset safe-haven demand.
• Traders turn their attention to Tuesday's US CPI report and Fed Chair Kevin Warsh's congressional testimony.

The Swiss Franc (CHF) weakens against the US Dollar (USD) on Monday as traders react to renewed hostilities in the Middle East. At the time of writing, USD/CHF trades around 0.8126, up 0.50% on the day and marking its highest level since June 25.

The pair advances despite modest strength in the US Dollar. The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, trades around 101.13, up 0.17% on the day.

The United States (US) and Iran exchanged missile and drone attacks over the weekend, while Tehran claimed that it had once again closed the Strait of Hormuz, pushing Oil prices higher and fuelling inflation concerns.

While geopolitical uncertainty and expectations of a Federal Reserve (Fed) rate hike later this year keep the US Dollar supported, traders remain hesitant to push it higher ahead of Tuesday’s US Consumer Price Index (CPI) data and Fed Chair Kevin Warsh’s congressional testimony, which could offer fresh clues about the interest rate path.

The Swiss Franc has failed to attract sustained safe-haven demand despite heightened geopolitical uncertainty. The currency has depreciated by more than 5% against the US Dollar since the US-Iran war broke out in late February.

The Swiss Franc also faces pressure from the Swiss National Bank’s (SNB) increased willingness to intervene in the foreign exchange market to curb excessive appreciation. Foreign exchange transaction data published on June 30 showed that the SNB purchased CHF 3.94 billion worth of foreign currency in the first quarter of 2026.

Rabobank Senior FX Strategist Jane Foley noted, “Last week SNB President Schlegel repeated the warnings that the central bank was ready to intervene in the market if needed.”

Foley added, “For now, we expect that the SNB’s focus will remain on emphasising that FX intervention is a policy tool with the aim of dissuading speculative buying and preventing the CHF from appreciating.”