Forex Pros - The U.S. dollar extended losses against the Swiss franc on Wednesday, touching the pair's all-time low as crude oil prices surged past USD100 a barrel and markets awaited new testimony from Federal Reserve Chairman Ben Bernanke about the state of the U.S. economy.
USD/CHF hit 0.9228 during European afternoon trade, the pair's lowest since Friday; the pair subsequently consolidated at 0.9243, shedding 0.45%.
The pair was likely to find short-term support at 0.9227, Friday's low and the pair's all-time low and resistance at 0.9320, Tuesday's high.
Crude futures for delivery in April were trading at USD100.84 a barrel on the New York Mercantile Exchange, after peaking at USD101.27 earlier in the day amid fears over growing signs of unrest in Saudi Arabia, the world's biggest oil exporter.
Saudi Arabia has increased its oil production after exports from Libya, approximately 2.3% of overall global supply, almost entirely halted due to ongoing political unrest in the country.
In testimony before the Senate Banking Committee on Tuesday, Bernanke said a sustained rise in oil prices could spark a broader rise in inflation.
''Sustained rises in the prices of oil and other commodities would represent a threat both to economic growth and to overall price stability,'' he said.
The dollar was also down against the euro, with EUR/USD gaining 0.53% to hit 1.3850.
Also Wednesday, a report by payroll processing firm ADP said U.S. private sector employment rose more-than-expected in February.
Later in the day, Ben Bernanke was to testify for a second day before the Senate Banking Committee in Washington, while the Fed was to publish its Beige Book.
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