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Forex - Dollar close to record low against Swiss franc after Fed

Published 04/28/2011, 06:21 AM
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Investing.com – The U.S. dollar was down against the Swiss franc on Thursday, trading within striking distance of Wednesday’s all-time low after Federal Reserve Chairman Ben Bernanke indicated that the bank would not tighten policy anytime soon.

USD/CHF hit 0.8690 during European late morning trade, the daily low; the pair subsequently consolidated at 0.8723, shedding 0.24%.

The pair was likely to find short-term support at 0.8669, Wednesday’s low and the pair’s all-time low and resistance at 0.8834, Wednesday’s high.

In his first ever post-policy meeting press conference on Wednesday, Bernanke said that the central bank, which left interest rates unchanged, "will complete" its USD600 billion bond-buying program by the end of June but indicated that the Fed was in no rush to tighten monetary policy with the jobs market still in a "very, very deep hole."

The Swiss franc has risen to record highs against the dollar and the euro in recent months, fuelled by expectations for policy tightening by the Swiss National Bank as low unemployment, rising house prices and robust consumer spending have kept the recovery on track.

However, Swiss exporters have been hit by the strong franc and the central bank has so far held off on hiking interest rates.

Meanwhile, the Swissie was slightly lower against the euro, with EUR/CHF easing up 0.07% to hit 1.2942.

Later Thursday, the U.S. was to publish advance data on first quarter gross domestic product, as well as official data on initial jobless claims.

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