RTTN: Swiss Franc Slides To New Multi-day Lows Against Euro And Pound
(RTTNews) - The Swiss franc slumped to new multi-day lows against the currencies of U.K. and Europe in Asian trading as a surge in equities weakened the lower-yielding Swiss currency.
The franc also declined against the US dollar and it eased from a 2-day high against the yen.
Stocks soared as investors were cheered by chip-maker Intel's strongest quarterly results.
Intel Corp. said Tuesday after the markets closed that it swung to a $2.9 billion second quarter profit, helped by higher revenue, sharply improved margins and the absence of a hefty charge that it took in the prior year quarter as a result of a fine imposed by the European Commission.
The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly revenue. At the same time, the company forecast third quarter revenue above analysts' current consensus estimate and raised its gross margin outlook for the full year 2010.
The Swiss currency reached 1.3493 against the euro around 2:25 am ET, the lowest level since June 28. On the downside, 1.3940 is seen as the next likely support level for the Swiss franc. The euro-franc pair that was worth 1.3422 at Tuesday's close is currently quoted at 1.3486.
Against the pound, the Swiss franc slipped to an 8-day low of 1.6142 around 2:25 am ET and this may be compared to yesterday's close of 1.6014. The pound-franc pair is presently worth 1.6123 with 1.6210 seen as the next likely target level.
U.K. consumer sentiment weakened for the second consecutive month in June, Nationwide Building Society said earlier today. The consumer confidence index fell to 63 from 66 in May.
Extending its early Asian session downtrend, the Swiss franc reached as low as 1.0619 against the US dollar before moving sideways around 2:50 am ET. The greenback-franc pair, which finished Tuesday's deals at 1.0550, is presently quoted at 1.0617. On the downside, the alpine unit may find support around the 1.0680 level.
The Swiss franc that climbed to a 2-day high of 84.45 against the Japanese yen in early Wednesday Asian deals pulled back and hit a low of 83.84 around 2:55 am ET. The franc-yen pair is presently worth 83.91 with 83.60 seen as the likely support level in near-term. The pair closed yesterday's deals at 84.16.
The Bank of Japan kicked off its two-day monetary policy meeting today and will announce its interest rate decision tomorrow. The bank is widely expected to keep rates on hold at the record low of 0.10 percent.
