Investing.com - The U.S. dollar slid to a one-week low against the Swiss franc on Wednesday, but the greenback remained supported as fears over worsening debt problems in the peripheral euro zone persisted.
USD/CHF hit 0.9130 during European morning trade the pair’s lowest since April 4; the pair subsequently consolidated at 0.9144, shedding 0.43%.
The pair was likely to find support at 0.9093, the low of April 4 and resistance at 0.9193, the session high.
Concerns over Spain’s borrowing costs intensified after the yield on the country’s 10-year government bonds briefly rose above 6% earlier, the highest level since early December amid concerns that the effects of the European Central Bank’s liquidity operation is wearing off.
Spanish Prime Minister Mariano Rajoy was to make a speech on the country’s recent austerity budget later in the day, as investors remained fearful that deficit reduction targets will not be met and the country will need a bailout.
Meanwhile, Italy saw its one-year borrowing costs rise for the first time since November earlier, in a poorly received government bond auction.
But market sentiment remained supported after the first quarter earnings season kicked off with a surprise profit from aluminum producer Alcoa.
The Swissie was little changed against the euro, with EUR/CHF dipping 0.02% to hit 1.2013.
On Tuesday, Swiss National Bank acting head Thomas Jordan said the central bank’s policy in relation to the 1.20 minimum exchange rate against the euro remained unchanged after the level was briefly breached in last week, but acknowledged that such breaches of its minimum exchange could reoccur.
USD/CHF hit 0.9130 during European morning trade the pair’s lowest since April 4; the pair subsequently consolidated at 0.9144, shedding 0.43%.
The pair was likely to find support at 0.9093, the low of April 4 and resistance at 0.9193, the session high.
Concerns over Spain’s borrowing costs intensified after the yield on the country’s 10-year government bonds briefly rose above 6% earlier, the highest level since early December amid concerns that the effects of the European Central Bank’s liquidity operation is wearing off.
Spanish Prime Minister Mariano Rajoy was to make a speech on the country’s recent austerity budget later in the day, as investors remained fearful that deficit reduction targets will not be met and the country will need a bailout.
Meanwhile, Italy saw its one-year borrowing costs rise for the first time since November earlier, in a poorly received government bond auction.
But market sentiment remained supported after the first quarter earnings season kicked off with a surprise profit from aluminum producer Alcoa.
The Swissie was little changed against the euro, with EUR/CHF dipping 0.02% to hit 1.2013.
On Tuesday, Swiss National Bank acting head Thomas Jordan said the central bank’s policy in relation to the 1.20 minimum exchange rate against the euro remained unchanged after the level was briefly breached in last week, but acknowledged that such breaches of its minimum exchange could reoccur.