RTTN: Swiss franc falls to 12-day low against US dollar
During early deals on Wednesday, the Swiss franc showed weakness against the US dollar, the European currency and the British pound. The franc declined to a 12-day low against the dollar and a 2-day low against the pound. On the other hand, the Swiss currency climbed to a 5-day high against the Japanese yen.
Against the US dollar, the Swiss franc edged down during early deals on Wednesday. At 3:10 am ET, the franc touched a 12-day low of 1.1850, compared to 1.1760 hit late New York Tuesday. If the Swiss currency falls further, 1.218 is seen as the next target level. The dollar-franc pair is currently trading at 1.1826.
The Swiss franc that closed Tuesday's North American session at 1.4771 against the European currency gained ground after hitting a 2-week low of 1.4729 during today's early Asian deals. At 3:10 am ET, the franc declined to 1.4817 against the euro. The euro-franc pair is currently trading at 1.4789 with 1.509 seen as the next target level.
Against the British pound, the Swiss franc traded down during Wednesday's early deals. At 3:10 am ET, the franc slipped to a 2-day low of 1.6675, compared to Tuesday's closing value of 1.6528. On the downside, 1.703 is seen as the next target level for the franc.
UK Government net reserves fell by USD 6 million in February, bringing the end-February total to USD 27.84 billion, the HM Treasury said today. This compares with USD 166 million decline to USD 27.85 billion recorded at end-January.
The Swiss currency that closed Tuesday's New York deals at 83.52 against the Japanese yen rose to a 5-day high of 84.21 at 4:05 am ET Wednesday. The next upside target level for the pair is seen around 84.8.
The yen slumped as the Bank of Japan board member Miyako Suda said that the Japanese economy remains to continue to worsen in the near term despite the steps taken by the central bank to combat recession.
Suda also predicted that the Japanese financial markets would remain under significant pressure, while the weak global economy would ultimately lead to a decline in exports.
Meanwhile, the Bank of Japan offered to buy 150 billion yen worth of bank-owned corporate bonds today. This is the first move by the central bank to buy corporate bonds via outright operations. Last month, the bank decided to buy up to one trillion yen worth of bank-held corporate bonds with credit ratings of A or higher that will mature within a year, to ease corporate fundraising concerns.
