Investing.com - The U.S. dollar rallied against the Swiss franc on Wednesday, as Italian borrowing costs surged to euro-era highs exacerbating concerns over the country's financial crisis and boosting demand for the safe haven greenback.
USD/CHF hit 0.9017 during European morning trade, the daily high; the pair subsequently consolidated at 0.9032, rising 0.93%.
The pair was likely to find support at 0.8768, the high of November 4 and resistance at 0.9142, the high of September 26.
The greenback's gains came after Paris-based clearing house hiked the margin call on Italian bonds, sending the yield on Italian ten-year bonds to more than 7%, a level widely seen as unsustainable.
Investors remained uncertain over whether Italy’s new government will be able to implement austerity measures, after Prime Minister Silvio Berlusconi announced late Tuesday that he would step down next week.
Meanwhile, Greek officials were still struggling to form a new coalition government.
The Swiss franc had been lower earlier after Swiss National Bank Vice Chairman Thomas Jordan said late Tuesday that the recent introduction of the minimum exchange rate of 1.20 per euro was simply an attempt to curb the appreciation of the franc and protect Switzerland’s economy.
The Swissie was up against the euro with EUR/CHF shedding 0.27%, to trade at 1.2345.
Also Wednesday, government data showed that China’s annualized rate of consumer price inflation came in broadly in line with expectations in October, slowing to 5.5%, after a 6.1% the previous month, easing fears over monetary tightening by Beijing.
USD/CHF hit 0.9017 during European morning trade, the daily high; the pair subsequently consolidated at 0.9032, rising 0.93%.
The pair was likely to find support at 0.8768, the high of November 4 and resistance at 0.9142, the high of September 26.
The greenback's gains came after Paris-based clearing house hiked the margin call on Italian bonds, sending the yield on Italian ten-year bonds to more than 7%, a level widely seen as unsustainable.
Investors remained uncertain over whether Italy’s new government will be able to implement austerity measures, after Prime Minister Silvio Berlusconi announced late Tuesday that he would step down next week.
Meanwhile, Greek officials were still struggling to form a new coalition government.
The Swiss franc had been lower earlier after Swiss National Bank Vice Chairman Thomas Jordan said late Tuesday that the recent introduction of the minimum exchange rate of 1.20 per euro was simply an attempt to curb the appreciation of the franc and protect Switzerland’s economy.
The Swissie was up against the euro with EUR/CHF shedding 0.27%, to trade at 1.2345.
Also Wednesday, government data showed that China’s annualized rate of consumer price inflation came in broadly in line with expectations in October, slowing to 5.5%, after a 6.1% the previous month, easing fears over monetary tightening by Beijing.