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FOREX-Dollar advances vs Swiss franc, FOMC statement looms

Published 06/24/2009, 01:06 PM
Updated 06/24/2009, 01:18 PM

* Dollar, euro up vs Swiss franc

* Traders cite intervention

* Focus seen quickly switching to FOMC meeting

(Adds quotes, details, updates prices, changes byline)

By Nick Olivari

NEW YORK, June 24 (Reuters) - The U.S. dollar rose against the Swiss franc on Wednesday as traders reported the Swiss National Bank was intervening in the market by selling the Swiss currency for dollars and euros.

The dollar was the biggest beneficiary of the intervention reports.

The Swiss National Bank declined to comment. The Bank for International Seettements, or BIS, also declined to comment on the intervention talk.

Investors were beginning to turn their attention to the policy statement from the Federal Reserve due at the close of the two-day meeting of its Federal Open Market Committee, at about 1815 GMT.

"It seems there was a second round from the SNB or BIS, though they probably won't confirm that," a trader said. "But it seems pretty clear from the muddy footprints in the market and the price action that they were intervening, not only in euro/swiss but also in dollar/swiss."

He called the Swiss National Bank's decision to intervene when the market was focused on the Fed meeting and to do it twice in one day "a brilliant strategy."

The dollar rose as high as 1.1026 francs on electronic trading platform EBS, breaking the 1.1000 level for the first time since May 21. It last traded up 2.9 percent at 1.0986.

The euro was up 2.1 percent at 1.5336 francs on EBS. It climbed as high as 1.5381. (Reporting by Nick Olivari and Steven C Johnson; Editing by Jan Paschal)

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