USD/CHF edged higher in Asian trading on Friday, recovering part of the previous day’s 1.25% decline and hovering near 0.7820. The pair found support from a firmer US Dollar, as investors continued to favor the currency’s safe-haven appeal in a cautious market environment.
Risk sentiment remained subdued after reports that the US president said naval restrictions on Iranian ports would remain in place, adding to concerns that the Strait of Hormuz could stay disrupted for longer than expected. The stance also came as congressional attempts to limit war powers failed to gain traction, reinforcing uncertainty around the geopolitical outlook.
Fresh US data offered additional support to the Dollar. The Personal Consumption Expenditures Price Index rose 3.5% year over year in March, up from 2.8% in February and in line with forecasts. On a monthly basis, the index increased 0.7%. The core PCE measure, which excludes food and energy and is closely watched by the Federal Reserve, advanced 3.2% from a year earlier, compared with 3.0% in the prior month and matching expectations.
Broader growth data were also released on Thursday. US gross domestic product expanded at a 2.0% annualized pace in the first quarter of 2026, below the 2.3% expected by economists, but above the 0.5% pace recorded in the previous quarter.
On the Swiss side, the KOF Leading Indicator improved to 97.9 in April from 95.6 in March, exceeding forecasts of 95.9. The increase reflected better readings in manufacturing, services, and consumer activity. Earlier in the week, the ZEW Swiss Survey Expectations index also improved, rising to -30.3 from -35.0, as more respondents saw the outlook as stable over the next six months rather than deteriorating.GBP/JPY advanced about 0.35% to trade near 214 during Friday’s Asian session, recovering as the Japanese Yen gave back much of the previous day’s gains. The move followed Tokyo’s intervention in the foreign-exchange market on Thursday, which was aimed at curbing one-sided speculative pressure on the currency.
Reuters reported that Japan stepped in to support the Yen against the US Dollar for the first time in nearly two years. Finance Minister Satsuki Katayama said the authorities were moving closer to taking decisive action in currency markets, reinforcing expectations that officials are prepared to act again if depreciation becomes disorderly.
Economic data from Tokyo also showed some easing in price pressures. The city’s April consumer price index excluding fresh food rose 1.5% from a year earlier, down from 1.7% in March and below market expectations of 1.8%. The softer reading suggests that underlying inflation momentum cooled more than expected.
Sterling was firmer against most major peers in Asian trading, supported by the Bank of England’s willingness to keep the door open to further tightening if energy-related inflation remains persistent. The central bank held its policy rate at 3.75% on Thursday, as widely anticipated, but Governor Andrew Bailey signaled that officials are watching for the risk of inflation spreading beyond energy prices.
Bailey emphasized that policymakers should not wait too long to respond if second-round inflation effects begin to emerge. The message left markets with the impression that the BoE is still prepared to raise rates again if price pressures prove more stubborn than currently expected.
