Swiss franc steady against dollar amid soft US data

20 Apr, 2004

The Swiss franc held steady in early Monday trading as the dollar continued to be pressured by weak US economic data that has dampened speculation over a possible US rate rise, as well as security concerns in the Middle East that sparked fresh caution among investors.
The dollar traded at 1.2895/00 francs, unchanged from late Swiss trading on Friday, while the euro last changed hands at 1.5520/24 francs versus 1.5522/24 on Friday.
Investors are waiting to hear from Federal Reserve Chairman Alan Greenspan, who will testify before Congress on Wednesday, hoping for new signs about the future direction of US rates.
A batch of disappointing US economic data weighed on the greenback, after reports showed industrial production unexpectedly dropped in March and consumer sentiment slipped in early April.
Heightened security concerns after Israel's killing of a Hamas leader was also expected to help the franc.
The Swiss currency, seen as a safe-haven asset, tends to strengthen in times of geopolitical uncertainty.

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