Swiss Franc Gains, Dollar Slides as US Bond Buyback Surge Pressures Greenback

After climbing in the latter half of last week, the USD/CHF pair reversed its gains at the start of this week. The currency pair is currently trading around 0.80031, reflecting weakened demand for the dollar as markets digest the latest US fiscal moves.

**US Buyback Moves Trigger Dollar Selling Pressure**

The direct trigger for the dollar's weakness is Washington's recently announced fiscal measures. According to reports, the US Treasury unveiled an expanded plan to buy back long-term government bonds on the 19th, which lifted long-term Treasury yields and quickly transmitted to the foreign exchange market, dragging the dollar index lower. Markets partly interpreted the buyback action as government intervention in the yield curve, fueling a "devaluation trade" on dollar assets.

**Safe-Haven Demand Supports Franc Strength**

While the dollar faces selling pressure, the Swiss franc—traditionally a safe-haven currency—has again attracted capital inflows. Switzerland, thanks to its stable political environment and robust financial system, has become one of the primary destinations in the current wave of global capital seeking safety. Market reports show that earlier, amid rising uncertainty over the US economic outlook, USD/CHF had dropped to multi-year lows, reflecting strong investor momentum toward risk aversion and franc-denominated assets.

**Short-Term Direction Focuses on Risk Sentiment**

The near-term path of USD/CHF will continue to be shaped by global risk sentiment and policy expectations from major economies. If concerns over US fiscal sustainability or the economic outlook persist, the dollar could face broader selling. However, some analysts caution that sustained franc strength could pose challenges for Switzerland's export sector, making the central bank's policy stance a key variable to watch going forward.