US Dollar Rises vs CHF, CAD on Tensions, Oil Drop

The US dollar strengthened against the Swiss franc and Canadian dollar in early Wednesday trading, driven by persistent Middle East tensions and declining oil prices that bolstered the greenback while pressuring commodity-linked currencies. The USD/CHF pair climbed 0.15% to around 0.7895 during the Asian session, while the USD/CAD rate extended gains for a second day, trading near 1.3770 after touching two-month highs.

Geopolitical developments in the Middle East provided key support for the dollar. Ongoing conflicts involving the United States, Israel, and Iran have heightened safe-haven demand for the currency, with the US Dollar Index rising 0.12% to 99.30. Iran has denied any direct negotiations with Washington to end the war, though reports indicate indirect messages exchanged through Pakistan as a mediator, potentially leading to an in-person meeting soon. US President Donald Trump stated that Tehran has shown eagerness to resolve the conflict, including a goodwill gesture related to energy flows through the Strait of Hormuz. Israeli media reported US proposals for a one-month ceasefire to facilitate discussions, while a 15-point plan from Washington aims to address...