(RTTNews) - The Swiss currency showed mixed performance against other major currencies during early New York trading on Tuesday. The franc fell against the dollar and the yen but gained ground against the euro and the pound.
In economic news, Switzerland's Federal Customs Administration said the nation's trade surplus accounted for CHF1.442 billion in September, compared with CHF1.441 billion surplus in August. Economists had expected a surplus of CHF1.2 billion.
On an annual basis, real exports rose 4.8% and imports recorded a 7.2% increase. In nominal terms, exports were up 7.1%, while imports climbed 9.9%. During the first nine months of the year, the trade surplus was CHF15.044 billion. In the same period, exports grew only 0.7% on an annual basis in real terms, while imports recorded 3.3% increase.
The Swiss currency slipped to a new multi-month low of 1.1557 against the US dollar by 8:00 am ET, compared to yesterday's close of 1.1498. The pair attempted to reverse direction and is currently trading at 1.1538. If the franc falls further, the near term downside target level is seen around 1.1605.
The US dollar got a boost from Federal Reserve Chairman Ben Bernanke's testimony before Congress yesterday endorsing more government spending to stimulate the U.S. economy, even if such a move could worsen the already huge U.S. budget deficit and weigh on the dollar long-term.
Bernanke's focus on the problems facing the broader economy comes a week ahead of the FOMC's October meeting. The Fed is widely expected to cut the key interest rate, and in his testimony Bernanke gave no indication to expect otherwise. As he has in other recent public appearances, the Fed chief emphasized the risk of a further economic slowdown, while noting that inflation has moderated.
The Swiss currency also edged lower against the Japanese yen in early New York deals on Tuesday. Extending early trading sessions' downtrend, the franc dropped to a 5-day low of 87.44 against the yen by 8:10 am ET. The franc-yen pair, which closed yesterday's New York session at 88.64 is currently worth 87.63.
