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Forex - Dollar hits 5-week high against weaker Swiss franc

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Forexpros - The U.S. dollar advanced to a five-week high against the broadly weaker Swiss franc on Monday, as Friday's announcement by Switzerland's UBS Bank that it may introduce a temporary charge on Swiss franc deposits weighed on the franc.

USD/CHF hit 0.8068 during European morning trade, the pair's highest since July 22; the pair subsequently consolidated at 0.8150, jumping 1.09%.

The pair was likely to find support at 0.7891, Friday's low and resistance at 0.8277, the high of July 19.

On Friday, UBS said that it may begin to charge client banks a temporary fee on deposits, in an effort to discourage clients from using accounts to hoard the safe haven currency.

Elsewhere, the dollar was broadly lower as demand for higher yielding assets was boosted after comments by Federal Reserve Chairman Ben Bernanke on Friday eased investor concerns over the faltering U.S. economy.

In a speech at the central bank's yearly retreat, Bernanke said that the U.S. economy was recovering and the Fed still had a "range of tools" it could use to bolster growth.

Bernanke also said that the bank's September policy-setting meeting would run for two days instead of one, to give policymakers more time to consider their options.

The Swissie was also sharply lower against the euro, with EUR/CHF rallying 1.21% to hit 1.1829.

Later in the day, the U.S. was to release industry data on pending home sales.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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