Swiss Franc Strengthens as Safe-Haven; Dollar Weakens amid Iran Conflict

The Swiss franc strengthened on Friday as escalating tensions in the Middle East boosted demand for safe-haven assets, while the US dollar fell amid volatile trading following unexpectedly weak U.S. labor market data.

The dollar declined by 0.4% against the Swiss franc, reaching 0.7778 francs, while the euro dropped 0.5% to 0.9018 francs.

The franc typically rises during geopolitical turmoil due to its reputation as a haven currency, benefiting from increased investor risk aversion amid the widening Middle East conflict.

U.S. President Donald Trump intensified pressure on Iran, calling for “unconditional surrender” in a sharp escalation of rhetoric following a week of war involving the United States and Israel against Tehran.

The dollar’s decline followed the release of weaker-than-expected U.S. employment figures, suggesting a possible shift in monetary policy expectations as markets anticipate that the Federal Reserve may cut interest rates sooner than previously projected.

Market analysts said geopolitical uncertainty continued to dominate trading sentiment.

“Little fundamental change has occurred as oil prices remain high and there is no positive news regarding Iran,” said Eric Brejard, foreign exchange and precious metals risk manager at Silver Gold Bull in Toronto.

The British pound rose 0.2% against the U.S. dollar to 1.3389 dollars, while earlier U.S. data showed the economy lost 92,000 jobs last month after the January figure was revised to 126,000 jobs. The unemployment rate climbed to 4.4%, compared with economists’ expectations of a 59,000 job gain.

In afternoon trading, the US dollar edged up 0.1% against the Japanese yen to 157.63 yen, partially reversing earlier gains following the employment report.

The dollar index, which measures the U.S. currency against a basket of major currencies, slipped slightly to 99.028 points, though it still rose 1.4% over the week, heading toward its largest weekly gain since November 2024.

Meanwhile, the euro fell 0.1% to 1.1597 dollars, trimming earlier losses but still declining 1.8% for the week, marking its steepest weekly drop since September 2022.