The Swiss franc came off a two-year low against the dollar in early European trade on Wednesday as investors booked profits amid concerns the dollar's recent rise may have become over-extended.
The dollar had gained across the board on Tuesday ahead of testimony by Ben Bernanke, the nominee for US Federal Reserve Chairman.
However, investors cashed in on the dollar's big gains of late after Bernanke's first round of testimony broadly reinforced market views that the Fed would keep raising rates.
The dollar last traded at 1.3181/84 Swiss francs from 1.3201/03 in late trading in Europe on Tuesday, after hitting a two-year high of 1.3242 francs earlier in the session.
The euro stood at 1.5438/41 francs, little changed from 1.5432/37 francs.
"Even though the euro-franc rate did not manage to cross the key resistance at 1.5464 so far, the well-supported dollar-franc rate for the time being makes a breakout of this critical resistance an increasingly likely scenario," UBS said in its daily market bulletin.
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