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Forex - USD/CHF hits new 1-month low after SNB holds rate steady

Published 06/17/2010, 04:52 AM
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Investing.com – The Swiss franc rose to a new 1-month high versus the U.S. dollar on Thursday, after Swiss National Bank held its benchmark interest rate steady in a widely expected decision.

USD/CHF sank 0.67% to hit 1.1237 during early European trade, its lowest since May 14. The pair was likely to find support at 1.1059, the low of May 12, and resistance at 1.1641, the high of June 8.

Earlier Thursday, the SNB left its London Interbank Offered Rate, or Libor, unchanged at 0.25%. The move came after the SNB had been forced to step up foreign-currency purchases recently to counter the Swissy's gain, bolster exports and limit deflation risks, as Switzerland’s economy strengthened.

The Swiss franc also climbed versus the euro, with EUR/CHF tumbling 0.96% to reach 1.3789.

Later Thursday, The U.S. was due to publish key CPI data and a weekly report on initial jobless claims, an important indicator of overall economic health.

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