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Forex - Dollar eases off record low against Swiss franc

Published 06/09/2011, 06:16 AM
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Investing.com – The U.S. dollar was up against the Swiss franc on Thursday, easing off the pair’s all-time low ahead of a policy setting meeting and key press conference by the European Central Bank later in the day.

USD/CHF hit 0.8411 during European morning trade, the pair’s highest since June 3; the pair subsequently consolidated at 0.8399, gaining 0.46%.

The pair was likely to support at 0.8325, the low of June 7, which was also a record low and resistance at 0.8445, the high of June 3.

Earlier in the day, the business federation Economiesuisse lowered its forecast for Switzerland’s economic growth to 2.1% this year from a previous estimate of 2.6%.

In its latest outlook for the economy, the association warned that the appreciation of the Swiss franc, which reached all-time highs against the euro and the dollar in the past two weeks, will keep pressuring Swiss exporters and may deter companies from longer-term capital investments in Switzerland.

Economiesuisse did not expect the Swiss National Bank to limit the franc’s gains through intervention, as it did between March 2009 and June last year.

"The SNB will be very wary of intervening, and the state of the economy doesn't require any action now," said Rudolf Minsch, chief economist at Economiesuisse.

Meanwhile, the Swissie was down against the euro, with EUR/CHF rising 0.64% to hit 1.2269.

Later in the day, the U.S. was to publish official data on its trade balance as well as a weekly government report on initial jobless claims.

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