Forexpros – The U.S. dollar fell to a seven-week low against the Swiss franc on Thursday, as the greenback broadly declined after the Federal Reserve said interest rates would remain low and additional stimulus may be implemented.
USD/CHF hit 0.9188 during European morning trade, the pair’s lowest since December 8; the pair subsequently consolidated at 0.9177, shedding 0.44%.
The pair was likely to find support at 0.9126, the low of November 23 and resistance at 0.9241, the high of December 2.
At the conclusion of Wednesday’s policy-setting meeting, the Fed said economic conditions will likely “warrant exceptionally low levels for the federal funds rate at least through late 2014.”
The central bank had previously pledged to keep interest rates close to zero until mid-2013.
The Fed also revised down its forecast for economic growth this year to a range of between 2.2% and 2.7%, from a range of 2.5% to 2.9% in November.
Fed Chairman Ben Bernanke said that policy makers were “prepared to provide further monetary accommodation” and added that bond buying is “an option that’s certainly on the table,” indicating that the bank may embark on a third round of quantitative easing.
In the euro zone, talks on a debt swap deal between Greece and its creditors were to resume in Athens later in the day.
Meanwhile, Italy was to auction as much as EUR5 billion of short term government debt, ahead of an auction of long term debt on Monday.
Meanwhile, the Swissie was higher against the euro with EUR/CHF edging down 0.04%, to hit 1.2073.
Later in the day, the U.S. was to release official data on initial jobless claims as well as a report on durable goods orders.
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