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Forex - USD/CHF close to record low as higher oil prices weigh

Published 03/07/2011, 08:28 AM
EUR/USD
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USD/CHF
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Investing.com – The U.S. dollar was trading close to a record low against the Swiss franc on Monday, as higher oil prices and the Federal Reserves loose monetary policy continued to weigh on sentiment towards the greenback.

USD/CHF hit 0.9236 during European afternoon trade, the daily low; the pair subsequently consolidated at 0.9250, easing up 0.04%.

The pair was likely to find support at 0.9199, Wednesday’s low and the pair’s all-time low and resistance at 0.9329, Friday’s high.

Earlier in the day, crude futures for delivery in April were trading at USD106.82 a barrel on the New York Mercantile Exchange, after peaking at USD106.93, while Brent oil surged above USD117.

Oils gains came amid fears that Libya was descending into a civil war, as the anti-Gaddafi revolt entered into its third week.

The dollar was also weighed amid expectations that prospective interest rate hikes by the European Central Bank and the Bank of England will make the greenback less attractive to investors seeking higher yields.

The dollar was also down against the euro, with EUR/USD rising 0.26% to hit 1.4024.

Later Monday, Federal Reserve Bank of Atlanta President Dennis Lockhart was due to speak in Washington, while the president of the Federal Reserve Bank of Chicago, Charles Evans, was also to deliver a speech.

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