The Swiss franc dipped against the dollar on Monday after smaller-than-expected job losses in the United States had triggered a hefty drop in the franc on Friday. "The rise in the dollar against the franc was a correction of recent moves," Credit Suisse analyst Marcus Hettinger said. "The dollar got a boost because longer-term yields in the US have risen."
The franc ticked down again on Monday against the dollar to 1.0883 per dollar compared with Friday's New York close of 1.0854. The franc dropped around 2 percent at times on Friday after smaller-than-expected job losses sparked speculation that the Federal Reserve may lift interest rates sooner than previously thought, prompting investors to reduce dollar short-positions. The franc was little changed against the euro, trading at 1.5174 per euro. "The franc is still stuck in the range of 1.50/1.52 against the euro," Hettinger said.
The currency pair has been mostly trading in this range since the Swiss National Bank intervened in the foreign exchange market on March 12 to stem a rise in the franc. Swiss labour market data showed that unemployment trended higher despite a seasonal dip in total jobless numbers in May.
Comments
Comments are closed.