Investing.com – The Swiss franc was lower against the U.S. dollar on Wednesday, dipping to a two-week low as renewed optimism over the global economic recovery sapped demand for safe haven assets.
USD/CHF hit 0.9250 during European morning trade, the daily high; the pair subsequently consolidated at 0.9220, easing up 0.24%.
The pair was likely to find support at 0.9139, Tuesday’s low and resistance at 0.9316, the high of March 14.
On Tuesday, the vice-chairman of the Swiss National Bank Thomas Jordan said that the Swiss franc's surge against the dollar has limited the Swiss central bank's leeway to raise interest rates.
"We are concerned. The (franc's) rise is tightening monetary conditions and that limits our room for maneuver in normalizing interest rates," Jordan said.
The Swiss currency's strength has been the key reason for the central bank to keep borrowing costs at ultra-low levels, despite a brighter growth outlook.
Meanwhile, the Swissie was up against the euro, with EUR/CHF slipping 0.11% to hit 1.2971.
Earlier Wednesday, the KOF Economic Research Agency said Switzerland’s leading economic barometer climbed unexpectedly in March, rising for the second consecutive month.
The report said that “the year-on-year growth rate of Swiss gross domestic product should remain positive and even exhibit some increasing momentum.”
USD/CHF hit 0.9250 during European morning trade, the daily high; the pair subsequently consolidated at 0.9220, easing up 0.24%.
The pair was likely to find support at 0.9139, Tuesday’s low and resistance at 0.9316, the high of March 14.
On Tuesday, the vice-chairman of the Swiss National Bank Thomas Jordan said that the Swiss franc's surge against the dollar has limited the Swiss central bank's leeway to raise interest rates.
"We are concerned. The (franc's) rise is tightening monetary conditions and that limits our room for maneuver in normalizing interest rates," Jordan said.
The Swiss currency's strength has been the key reason for the central bank to keep borrowing costs at ultra-low levels, despite a brighter growth outlook.
Meanwhile, the Swissie was up against the euro, with EUR/CHF slipping 0.11% to hit 1.2971.
Earlier Wednesday, the KOF Economic Research Agency said Switzerland’s leading economic barometer climbed unexpectedly in March, rising for the second consecutive month.
The report said that “the year-on-year growth rate of Swiss gross domestic product should remain positive and even exhibit some increasing momentum.”