The Swiss Franc declines as rising safe-haven demand boosts the US Dollar.

• USD/CHF moves higher as the US Dollar finds support after President Trump threatened to renew attacks on Iran.
• Meanwhile, the US 30-year Treasury yield eased to 5.181% after reaching a near 19-year peak of 5.200% on Wednesday.
• In Switzerland, preliminary data showed the economy expanded 0.5% in the first quarter, marking its strongest quarterly growth in a year and pointing to a recovery in economic activity.

USD/CHF continued to climb for a second straight session, trading near 0.7890 during Wednesday’s Asian session as demand for safe-haven assets boosted the US Dollar. Market sentiment remained cautious after a Bloomberg report indicated that President Donald Trump had threatened to restart attacks on Iran within days in an effort to pressure Tehran into ending the conflict with Israel. The warning followed a temporary pause in military action after Iran reportedly presented a new proposal aimed at de-escalation.

Concerns over rising energy prices linked to the conflict have also fueled fears of stronger inflationary pressures in the United States. Higher oil prices reinforced expectations that the Federal Reserve could keep interest rates elevated for a longer period or potentially tighten policy further if inflation remains persistent.

Meanwhile, US Treasury yields stayed near multi-month highs. The 30-year Treasury yield eased slightly to 5.181% after touching a nearly 19-year high of 5.200% earlier on Wednesday. At the same time, the 10-year yield hovered close to a 16-month peak of 4.687%, while the 2-year yield remained near a 15-month high of 4.139%, both levels reached on Tuesday.

In Switzerland, preliminary data showed the economy expanded by 0.5% quarter-over-quarter in the first quarter of 2026, up from 0.2% growth in the previous quarter. The reading marked the country’s strongest quarterly growth in a year and suggested that the Swiss economy continues to recover steadily. Investors are now awaiting Switzerland’s first-quarter Industrial Production data, scheduled for release on Thursday.