Investing.com - The U.S. dollar was higher against the Swiss franc on Monday, as fresh concerns over the financial situation in the euro zone following news of a bailout plan for Cyprus boosted demand for the safe haven greenback.
USD/CHF hit 0.9456 during European morning trade, the session high; the pair subsequently consolidated at 0.9446, climbing 0.61%.
The pair was likely to find support at 0.9380, the low of March 15 and resistance at 0.9489, the high of March 7.
On Saturday, the European Union and International Monetary Fund reached an agreement on a EUR10 billion bailout for Cyprus. In return for the bailout international creditors demanded that all bank customers must pay a one-time tax on deposits.
The agreement marked the first time since the onset of the euro zone debt crisis that depositors have been forced to take a haircut in return for financial aid.
The agreement triggered a run on cash machines in Cyprus over the weekend and sparked fears over a disruption to financial markets in the euro zone.
Market sentiment slightly improved however, following reports that the government in Cyprus was preparing a new deposit tax proposal to lessen the impact on smaller savers. The parliament was to vote on whether to approve the tax proposal later Monday.
The Swissie was higher against the euro with EUR/CHF shedding 0.36%, to hit 1.2232.
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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.
