Investing.com - The broadly weaker dollar fell to more than one-week lows against the Swiss franc on Thursday, a day after the Federal Reserve indicated that rates would remain on hold despite the improving U.S. economic outlook, and after the Swiss National Bank kept monetary policy unchanged.
USD/CHF was down 0.35% to 0.8924, the lowest level since June 9, from 0.8953 late Wednesday.
The pair was likely to find support at 0.8910 and resistance at 0.9000.
At the conclusion of its two-day meeting on Wednesday, the Fed cut its bond purchases by another $10 billion a month, to $35 billion, saying there was "sufficient underlying strength" in the U.S. economy to continue tapering.
The drop in the dollar came after Fed Chair Janet Yellen gave no indication of when interest rates could start to rise.
The central bank acknowledged the recent increases in inflation and drop in unemployment, but still lowered its forecast for growth this year due to "unexpected contractions" in the first quarter as a result of the unusually harsh winter.
Meanwhile, the Swiss National Bank kept its benchmark interest rate unchanged close to zero on Thursday and reaffirmed its commitment to the minimum exchange rate of CHF1.20 per euro.
The accompanying rate statement released after the announcement said that the Swiss franc is “still high.”
The SNB also said it would continue to enforce the minimum exchange rate of 1.20 per euro with the utmost determination and reiterated that it is prepared to purchase foreign currency in “unlimited quantities” and take further measures if required.
The Swiss franc was fractionally higher against the euro following the announcement, with EUR/CHF dipping 0.07% to 1.2167, from 1.2175 late Wednesday.