USD/CHF trades near 0.8080, drops to two-month lows due to rising safe-haven demand

• USD/CHF has recorded a two-month low of 0.8056 on Friday.

• The Swiss Franc receives support from safe-haven demand amid rising geopolitical tensions in the Middle East.

• Israeli military officials stated that Israel attacked dozens of sites across Iran to dismantle the Iranian nuclear program.

USD/CHF extends its losing streak for the third successive session, trading around 0.8070 during the Asian hours. The pair has recorded a two-month low of 0.8056 as the Swiss Franc (CHF) receives support from increased safe-haven demand amid escalating tensions in the Middle East.

Israeli military officials said that Israel attacked dozens of sites across Iran, as the Iranian nuclear program is an existential threat to Israel. Israeli Minister of Defense Israel Katz warned his country to face a missile and drone attack following Israel's preemptive attack on Iran. Katz declared a special state of emergency in the country, per Axios.

Moreover, White House Secretary of State Marco Rubio released a statement that “Tonight, Israel took unilateral action against Iran. We are not involved in strikes against Iran, and our top priority is protecting American forces in the region.” “President Trump and the Administration have taken all necessary steps to protect our forces and remain in close contact with our regional partners.” Let me be clear: Iran should not target US interests or personnel,” Rubio added.

The risk sentiment also dampens as US President Donald Trump expanded steel tariffs starting June 23 on imported “steel derivative products” including household appliances, such as dishwashers, washing machines, refrigerators, etc. The tariffs were initially imposed at 25% in March and later doubled to 50% for most countries. This is the second time the scope of affected products has been expanded.