Forexpros — The U.S. dollar was up for the first time in seven days against the Swiss franc on Monday, but remained close to the record low as mounting concerns over a potential U.S. sovereign debt default boosted appeal of the safe haven Swissie.
USD/CHF pulled back from 0.8080, the pair’s all-time low to hit 0.8166 during European morning trade, edging 0.16% higher.
The pair was likely to find short-term support at 0.8080, the pair’s record low and resistance at 0.8330, the high of July 13.
U.S. President Barack Obama said over the weekend that the U.S. government was “running out of time” in regards to negotiations over lifting the country’s USD14.3 trillion debt ceiling before an August 2 deadline.
Former U.S. Treasury Secretary Larry Summers said that a U.S. debt default would cause panic throughout the financial system and long-term uncertainty.
Ratings agencies Moody’s and Standard & Poor’s both warned last week that a failure to raise the debt limit in time would result in a downgrade in the credit rating of the world’s largest economy.
The safe-haven appeal of the Swissie was also bolstered amid ongoing concerns over the euro zone’s debt woes.
Euro zone finance ministers were to meet Thursday to focus on “the financial stability of the euro area as a whole and the future financing of the Greek program,” according to the president of the European Council, Herman Van Rompuy.
The second summit in less than a month follows a worsening of the crisis that pushed Italy to the attention of investors and drove bond yields to euro-lifetime highs across Europe’s most indebted nations.
Meanwhile, the Swissie was up against the euro, with EUR/CHF shedding 0.58% to hit 1.1476. It earlier sank to a fresh record low of 1.1401.
Later in the day, the U.S. was to publish a government report on the balance of domestic and foreign investments.
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