The US dollar declined broadly on Thursday as Middle East tensions boosted the appeal of other safe-haven currencies, with technical factors seen working in favour of a stronger Swiss franc. Popular unrest Bahrain, Libya and Yemen as well as concerns about Iranian warships transiting the Suez Canal have fostered uncertainty among international investors in recent days.
The euro was down 0.7 percent against the Swiss franc at 1.2931 francs, while the dollar was down 0.9percent at 0.9504 francs. Key technical support for the euro/Swiss franc was broken at 1.3005, the 21-day moving average and base of the Bollinger band. Technicians see 1.2815 as the next bear objective and 1.2896 as support.
This is the 38.2 percent retracement of the rally from 1.2398 record lows to the 1.3205 high from last Friday. Strong support should emerge around this region, an analyst said. The euro was last up 0.3 percent at $1.3602 dollars. The dollar fell against the yen for a second straight day and was last down 0.5 percent at 83.20 yen.
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