Investing.com - The U.S. dollar was lower against the Swiss franc on Monday, as demand for the greenback weakened broadly after former U.S. Treasury secretary Larry Summers withdrew from the race to be the next Federal Reserve chairman.
USD/CHF hit 0.9232 during European morning trade, the lowest since August 29; the pair subsequently consolidated at 0.9265, 0.32% lower for the day.
The pair was likely to find support at 0.9216, the low of August 29 and resistance at 0.9325.
Investors were eyeing Wednesday's outcome of the upcoming Fed meeting, after a recent series of lukewarm U.S. data raised doubts over whether the central bank will start to taper its USD85 billion-a-month bond buying program.
The greenback also came under pressure after Lawrence Summers pulled out of the race to be the next Fed chairman, easing investor concerns that he would roll back economic stimulus measures more aggressively than his main rival for the post, Janet Yellen.
The Swissie was fractionally lower against the euro with EUR/CHF edging up 0.08%, to hit 1.2372.
European Central Bank President Mario Draghi said Monday that the economic recovery in the euro zone remains "fragile" and reiterated that interest rates will remain at current or lower levels for an "extended period". The comments came during a speech in Berlin.
Separately, data showed that consumer price inflation in the euro zone remained steady at 1.3% on a year-over-year basis in August, unchanged from an initial estimate and in line with expectations.
Later in the day the U.S. was to publish the Empire state manufacturing index, in addition to data on industrial production and the capacity utilization rate.
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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.
