The USD/CHF pair strengthened above the 0.9050 level on Tuesday, following remarks by former U.S. President Donald Trump that reignited concerns over potential tariffs. Markets reacted to the prospect of heightened trade tensions, prompting a shift toward the U.S. dollar, often seen as a safer currency in times of uncertainty.
Trump’s comments on revisiting tariffs on key trading partners raised fears of a renewed trade conflict, which could impact global economic recovery. This bolstered demand for the U.S. dollar, while the Swiss franc, traditionally a safe haven, faced pressure amid shifting investor sentiment.
Analysts noted that the move in the USD/CHF pair was also influenced by broader dollar strength, supported by solid U.S. economic indicators. Despite concerns about tariffs, the robust performance of the U.S. economy has strengthened the dollar, making it more appealing compared to other safe-haven currencies like the Swiss franc.
The pair’s performance above 0.9050 highlights underlying support for the dollar, although further movement will likely depend on additional trade-related developments. Traders are closely monitoring potential policy updates and their impact on global markets, which could influence the trajectory of the USD/CHF in the coming days.
