Forex - USD/CHF hits 2-day high after Japan intervention

Published 10/31/2011, 05:57 AM
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Investing.com - The U.S. dollar rose to a two-day high against the Swiss franc on Monday, as Japan's intervention in the foreign exchange market to curb the nation's strong currency sent the greenback broadly higher.

USD/CHF hit 0.8741 during European morning trade, the pair's highest since October 27; the pair subsequently consolidated at 0.8709, rising 0.90%.

The pair was likely to find support at 0.8573, the low of September 7 and resistance at 0.8858, the high of October 26.

Japanese officials launched an intervention to curb the appreciation of the yen after the dollar fell to a record low of JPY75.56 in early trade.

Commenting on the move, Japanese Finance Minister Jun Azumi said Tokyo had acted on its own and would keep intervening until it was satisfied with the results. Azumi added that he ordered the intervention because “speculative moves” in the currency failed to reflect Japan’s economic fundamentals.

Meanwhile, the single currency came under pressure as investors worried that European leaders' plans to bolster the region's lenders could fail and that they were struggling to finance the enhancement of the euro zone's bailout fund.

The Swissie was fractionally higher against the euro with EUR/CHF inching down 0.14%, to hit 1.2194.

Later in the day, the U.S was to produce a report on manufacturing activity in the Chicago area.

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