The U.S dollar recovered versus the EUR during Wednesday after a swift spike lower by the Swiss franc against both currencies. The EUR reversed its early gains as European shares fell, with concerns that Euro Zone debt problems would stifle the region's economic growth keeping investors averse to risky assets. Economic News USD - Dollar Hits 4 Year High on Rates Outlook The U.S. currency moved towards a 4 year high against the EUR on speculation U.S. policy makers will reiterate that the economic recovery is gaining pace. The greenback gained to $1.1946 per euro from $1.1973 yesterday. The Dollar climbed as high as $1.1877 per euro on June 7, the strongest since March 2006. Against the yen, the U.S, dollar was flat at 91.34. Currency traders also absorbed comments from Federal Reserve Chairman Ben Bernanke late Monday. He said he didn't expect the U.S. economy to suffer a double-dip recession. The Dollar may continue to advance vs. the EUR on speculation the Federal Reserve will begin to normalize its monetary policy before the ECB with the U.S. economy recovering at a faster pace. Analysts said that both these factors are supportive of a strengthening Dollar. EUR - EUR/CHF Rebounds Sharply The EUR rose on Tuesday as investors booked profits a day after the currency hit its lowest level against the dollar since early 2006. Against the Dollar, the EUR rose above $1.20 after tumbling to $1.1876 on Monday, its lowest level since March 2006. But analysts said the market was still anxious about debt levels in several Euro Zone countries and debt auctions this week from Portugal and Spain. The EUR also hit an all-time trough below 1.38 Swiss francs but rebounded sharply, with traders citing Swiss National Bank (SNB) intervention to weaken the franc. Data showing how much Switzerland has benefited from the European debt crisis pushed the Swiss franc to a new high versus the EUR. Analysts said that may have prompted some intervention by the Swiss National Bank -- either by buying EUR against the franc or the U.S. dollar. The EUR abruptly rebounded from a low against the Swiss franc earlier spurred talk of intervention by the Swiss National Bank. The SNB has intervened since 2009 to prevent excess franc strength but slowed its EUR purchases recently as the EUR fell below 1.40 francs. The market remains bearish on the EUR generally, with Monday's four-year low of $1.1876 still a downside target, followed by expected options triggers around $1.1850. JPY - Yen Falls on Asian Stocks Rally The Japanese yen weakened from an 8 year high against the EUR as Asian shares rebounded and Federal Reserve Chairman Ben Bernanke said the U.S. economic recovery was intact.

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