Swiss Franc slips versus US Dollar as elevated Oil prices weaken its safe-haven appeal

0.8230 marks the session high for USD/CHF. The pair has rebounded from lows of 0.8193 earlier this month.
Despite paring its losses, the US Dollar is heading for a third straight weekly fall.
Rising oil prices pressure the Swissie after its strong performance in this week's risk-off trading.

USD/CHF remains on course for a 0.3% weekly decline. The pair has recovered above 0.8220, reversing Thursday's losses, but is still down nearly 1% over the last three weeks. On Friday, the Swiss Franc (CHF) is surrendering gains against the US Dollar (USD) as concerns over Switzerland's economic exposure to higher oil prices weigh on the currency.

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

Brent crude has climbed to $113.50 per barrel, close to a six-month high and up nearly 20% in October. The rise in oil prices is exerting substantial pressure on the Swiss Franc on Friday.

Supply disruption fears have returned following reports of further attacks on vessels trying to pass through the Strait of Hormuz, alongside continued strikes by Iran-backed Houthis on Saudi Arabian airports and oil infrastructure. Prices have consequently moved close to their highest levels since the Middle East conflict began.

Swiss Franc Reclaims Safe-Haven Role

Even so, worries about an AI bubble and bond-market turmoil over the past few weeks have restored the Swissie's safe-haven appeal, limiting CHF declines so far. The US Dollar has struggled this week. A series of disappointing technology company results has fuelled doubts about the AI sector's profitability, driving investors out of equities and towards the safety of US Government bonds.

A fall of more than 30 basis points in the US 10-year Treasury note yield during October has created a substantial obstacle to US Dollar advances.

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 offer an important counterweight to any more pronounced Dollar sell-off.

US Dollar: Today's Currency Moves

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

	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 moves between the major currencies are displayed in the heat map. Select the base currency in the left-hand column and the quote currency in the top row. Selecting the US Dollar on the left and following its row across to the Japanese Yen, for instance, gives the percentage change for USD (base)/JPY (quote) in the intersecting cell.