Forexpros – The U.S. dollar fell to a record low against the Swiss franc on Wednesday, as talks on raising the U.S. debt ceiling remained at a standstill, while a report showed that the franc’s strength looks set to weigh on Switzerland’s economy in the coming months.
USD/CHF hit 0.7996 during European morning trade, the pair’s all-time low; the pair subsequently consolidated at 0.8007, dipping 0.06%.
The pair was likely to find support at 0.7950 and short-term resistance at 0.8059, Tuesday’s high.
On Tuesday, U.S. Republican leaders delayed a key vote in the House of Representatives on a plan to raise the country’s USD14.3 trillion debt ceiling until Thursday at the earliest, adding to concerns over a possible sovereign debt default or downgrade.
Democrats are seeking a combination of spending cuts and revenue increases to solve the debt crisis, while Republicans say that any compromise must not include higher taxes.
Meanwhile, a report earlier showed that Switzerland’s economic barometer fell to the lowest level since July 2010 in July, adding to fears that the franc’s sharp gains may hurt the country’s economic growth.
The KOF Swiss Economic Institute said the indicator, which points to the expected performance of the Swiss economy in about six months’ time, fell to 2.04 in July, from 2.23 the previous month, outstripping expectations for a decline to 2.12.
The Swissie was also higher against the euro, with EUR/CHF shedding 0.23% to hit 1.1599.
Later in the day, the U.S. was to publish official data on durable goods orders, while the U.S. Federal Reserve was to publish its Beige Book.
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