LONDON (SHARECAST) - The US dollar fell to a new low against the Swiss franc on Thursday as the defensive qualities of the Swiss currency attracted cautious investors worried by developments in the Middle East. The greenback fell at one point to 92.38 Swiss centimes before recovering to 93.18. Meanwhile, the US currency also lost ground to the Japanese yen and the euro, as declining yields on US treasury bonds prompted investors to shift their funds outside of the USA. The dollar was buying 81.92 yen towards the end of the New York trading session, down from 82.46 in late trading in North America the day before. Meanwhile, the euro climbed to just above $1.38 from $1.3761 the day before, as traders remained convinced that interest rate rises are likely to happen sooner in Europe than in the US. The dollar index, which measures the greenback’s value against a basket of six currencies, retreated to 77.086 from 77.373 late on Wednesday. Sterling took a dive after disappointing retail sales data from the Confederation of British Industry (CBI). The CBI’s quarterly distributive trades survey showed that 36% of retailers saw the volume of sales rise in the two weeks to 16 February from the same period a year ago against 30% who said they fell. The balance of +6% was below expectations of +25% and the slowest year-on-year growth in eight months. The UK currency rallied from its low point to trade at around $1.6139 in late trading in New York, down from around $1.6210 some 24 hours earlier.

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