Investing.com - The U.S. dollar dropped to seven-month lows against the Swiss franc on Thursday, as the Federal Reserve's decision to hold its current stimulus program weighed on demand for the greenback.
USD/CHF hit 0.9100 during European afternoon trade, the pair's lowest since February 7; the pair subsequently consolidated at 0.9101, slipping 0.20%.
The pair was likely to find support at 0.9066, the low of February 7 and resistance at 0.9235, the high of August 28.
The Fed refrained on Wednesday from reducing the USD85 billion pace of its monthly asset purchases and said the central bank must determine its policies based on "what’s needed for the economy," even if it surprises markets.
Speaking after the conclusion of the Fed's two-day policy-setting meeting, Fed Chairman Ben Bernanke Bernanke said he wanted to "wait a bit longer and to try to get confirming evidence" that the economy is showing signs of lasting improvement.
Meanwhile, the Swissie's gains were limited after the Swiss National Bank on Thursday re-affirmed its cap on the franc and vowed to defend it with unlimited currency interventions to protect the economy.
The comments came after the SNB held its benchmark interest rate near zero, in a widely expected move.
The Swissie was steady against the euro with EUR/CHF dipping 0.01%, to hit 1.2332.
Later in the day, the U.S. was to release the weekly report on initial jobless claims, as well as the Philly Fed manufacturing index and data on existing home sales.
USD/CHF hit 0.9100 during European afternoon trade, the pair's lowest since February 7; the pair subsequently consolidated at 0.9101, slipping 0.20%.
The pair was likely to find support at 0.9066, the low of February 7 and resistance at 0.9235, the high of August 28.
The Fed refrained on Wednesday from reducing the USD85 billion pace of its monthly asset purchases and said the central bank must determine its policies based on "what’s needed for the economy," even if it surprises markets.
Speaking after the conclusion of the Fed's two-day policy-setting meeting, Fed Chairman Ben Bernanke Bernanke said he wanted to "wait a bit longer and to try to get confirming evidence" that the economy is showing signs of lasting improvement.
Meanwhile, the Swissie's gains were limited after the Swiss National Bank on Thursday re-affirmed its cap on the franc and vowed to defend it with unlimited currency interventions to protect the economy.
The comments came after the SNB held its benchmark interest rate near zero, in a widely expected move.
The Swissie was steady against the euro with EUR/CHF dipping 0.01%, to hit 1.2332.
Later in the day, the U.S. was to release the weekly report on initial jobless claims, as well as the Philly Fed manufacturing index and data on existing home sales.