ZURICH: The Swiss franc struck a high point against the US dollar on Thursday, after the greenback came under pressure over a yawning US deficit and amid greater volatility ahead of the Easter holidays.
In mid-morning trading, the Swiss currency was at 0.8809 francs for a dollar, strengthening to a new high level, and then eased to 0.8829 francs.
Pictet bank analysts pointed to International Monetary Fund chief economist Olivier Blanchard's comments that the United States lacked a credible plan to reduce its budget deficit in the medium term, and noted that the greenback had therefore "found itself under pressure."
"This last session of the week before the Easter weekend ... should remain volatile," they added.
A liquidity shortage before the holiday weekend has led to sharp fluctuations in exchange rates, Zurich Kantonalbank analysts noted.
However, they believed that the current weakness in the dollar is exaggerated.
Comments
Comments are closed for this article.