Why is the Swiss Franc easing against the US Dollar as high Oil prices weaken its safe-haven status?

USD/CHF reaches a session high of 0.8230, extending its rebound from lows of 0.8193 earlier this month.
Despite paring losses, the US Dollar is still headed for a third straight weekly fall.
The Swissie faces pressure from rising Oil prices after outperforming amid this week's risk aversion.

The Swiss Franc (CHF) is surrendering gains against the US Dollar (USD) on Friday as rising Oil prices fuel concerns over the Swiss economy's exposure. Back above 0.8220, USD/CHF has reversed Thursday's losses. Nevertheless, the pair is still heading for a 0.3% weekly fall and a decline of nearly 1% over the last three weeks.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

The Swiss Franc is facing considerable pressure from Oil prices on Friday, with Brent crude climbing to nearly six-month highs of $113.50 per barrel. The rise takes its October gains to nearly 20%.

Supply disruption fears have returned following reports of further attacks on vessels trying to pass through the Strait of Hormuz, alongside continuing attacks by Iran-backed Houthis on Saudi Arabian airports and Oil infrastructure. These concerns have driven prices close to their highest levels since the Middle East conflict began.

Can the Swiss Franc retain its renewed safe-haven appeal?

Demand for the Swissie as a safe haven has nevertheless returned amid AI bubble concerns and bond market turbulence over the last few weeks, helping to limit CHF declines so far. By contrast, the US Dollar has struggled this week. A series of disappointing tech company results heightened worries about the AI sector's profitability, prompting investors to retreat from equities and seek safety in US Government bonds.

With the US 10-year Treasury note yield down more than 30 basis points in October, US Dollar rallies face a substantial obstacle.

For the outlook, ING analysts caution that “resurgent AI-related jitters and the upcoming US midterms are increasing downside risks for the Dollar,” while emphasising that a “still-hawkish Fed” is likely to act as a significant counterweight to any sharper Dollar sell-off.

How Is the US Dollar Performing Today?

The US Dollar recorded its strongest performance against the Euro today. The table below sets out the percentage changes in the US Dollar (USD) against the major currencies listed.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.08%	-0.16%	-0.31%	-0.14%	0.06%	-0.05%	-0.17%
EUR	-0.08%		-0.25%	-0.40%	-0.21%	-0.01%	-0.13%	-0.26%
GBP	0.16%	0.25%		-0.17%	0.04%	0.24%	0.12%	-0.01%
JPY	0.31%	0.40%	0.17%		0.20%	0.39%	0.28%	0.15%
CAD	0.14%	0.21%	-0.04%	-0.20%		0.19%	0.08%	-0.05%
AUD	-0.06%	0.01%	-0.24%	-0.39%	-0.19%		-0.11%	-0.23%
NZD	0.05%	0.13%	-0.12%	-0.28%	-0.08%	0.11%		-0.12%
CHF	0.17%	0.26%	0.00%	-0.15%	0.05%	0.23%	0.12%

Percentage movements between major currencies are displayed in the heat map. Select the base currency from the left-hand column and the quote currency from the top row. For instance, choosing the US Dollar on the left and following that row across to the Japanese Yen gives the percentage change for USD (base)/JPY (quote) in the corresponding cell.