ZURICH: The Swiss franc slipped slightly against the dollar on Wednesday as the euro seesawed against the greenback overnight after Federal Reserve Chairman Ben Bernanke said the central bank is ready to support the US economy if needed.
The franc has largely been trading in tandem with the single currency since the Swiss National Bank set a cap of 1.20 francs per euro on Sept. 6, in an attempt to prevent a recession and deflation.
The franc was down 0.1 percent against the dollar to trade at 0.978 by 0625 GMT compared to the New York close.
Concerns about the euro zone debt crisis had pushed the single currency to a two-year low of $1.2162 last week, with the franc also dragged to a 19-month trough of 0.9873 on Friday.
Markets will continue to be focused on Bernanke, who is due to address the House Financial Services Committee later in the day. On Tuesday, he said the Fed stands ready to offer more stimulus as needed but stopped short of signaling near-term action. He said the US recovery is being held back by Europe's debt crisis and uncertainty surrounding US fiscal policy.
The franc was flat against the euro at 1.201 with no major Swiss economic indicators due this week apart from the ZEW investor sentiment index, published at 0900 GMT.
"The cross continues to trade in about the tightest possible trading range just above 1.2010. On the back of subdued inflation ... we find it difficult to look for a materially new price trend in EURCHF," said UBS economist Reto Huenerwadel.
Comments
Comments are closed for this article.