USD Soars Against CHF on Inflation Risks and Geopolitical Tensions

The US dollar rose to a one-week high against the Swiss franc on Thursday amid concerns over inflation risks and geopolitical tensions.

The USD/CHF pair climbed to 0.8045, its highest level in two weeks, as investors became convinced that higher energy prices will lead to inflationary pressures and force the US Federal Reserve (Fed) to raise borrowing costs at least once by the end of this year.

This is according to the CME Group's FedWatch Tool, which shows traders pricing in a nearly 80% chance of a rate hike before the end of 2019.

The US Consumer Price Index (CPI) report released on Wednesday was in-line with expectations, but concerns over inflation risks stemming from volatile oil prices and the US-Iran standoff have pushed the safe-haven dollar higher.