Investing.com – The U.S. dollar was down against the Swiss franc on Tuesday, falling to hit a 4-day low as risk aversion remained elevated amid concerns over debt contagion in the euro zone and a slowdown in Chinese economic growth.
USD/CHF hit 0.9926 during European morning trade, the pair’s lowest since November 24; the pair subsequently consolidated at 0.9976, shedding 0.24%.
The pair was likely to find support at 0.9848, the low of November 24 and resistance at 1.0053, last Friday’s high.
Earlier in the day, the China Daily quoted Zhong Jiyin, an economist at the Chinese Academy of Social Sciences, as saying China needs to raise interest rates by 2%. China’s recent increases in the reserve requirement ratio won’t be enough to reverse excessive liquidity in the system, Zhong said.
Elsewhere, in the euro zone the cost of insuring Spanish and Portuguese sovereign debt against default soared to euro-lifetime highs on Monday after an auction of Italian bonds produced lackluster demand, highlighting the lack of confidence in the deal to help contain Ireland's crisis.
The Swissy was also up against the euro, with EUR/CHF tumbling 0.78% to hit 1.3025.
Also Tuesday, data showed that Switzerland’s UBS consumption indicator rose to 1.72 in October after declining sharply to hit 1.70 in September.
USD/CHF hit 0.9926 during European morning trade, the pair’s lowest since November 24; the pair subsequently consolidated at 0.9976, shedding 0.24%.
The pair was likely to find support at 0.9848, the low of November 24 and resistance at 1.0053, last Friday’s high.
Earlier in the day, the China Daily quoted Zhong Jiyin, an economist at the Chinese Academy of Social Sciences, as saying China needs to raise interest rates by 2%. China’s recent increases in the reserve requirement ratio won’t be enough to reverse excessive liquidity in the system, Zhong said.
Elsewhere, in the euro zone the cost of insuring Spanish and Portuguese sovereign debt against default soared to euro-lifetime highs on Monday after an auction of Italian bonds produced lackluster demand, highlighting the lack of confidence in the deal to help contain Ireland's crisis.
The Swissy was also up against the euro, with EUR/CHF tumbling 0.78% to hit 1.3025.
Also Tuesday, data showed that Switzerland’s UBS consumption indicator rose to 1.72 in October after declining sharply to hit 1.70 in September.