USD stronger whilse Swiss Franc suffers

USD stronger whilse Swiss Franc suffers

Story link: USD stronger whilse Swiss Franc suffers

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The US dollar was stronger on Tuesday due in large part to the prospect of further rises in US interest rates. The USD initially gained 0.8 percent to $1.1954 in relation to the euro, but later slipped back slightly to $1.2015.

It hit a 14-month high against the yen when it gained 0.9 percent to ¥112.92, gained 0.7 percent to SFr1.3024 in relation to the Swiss franc, a 15-month high.

The dollar also gained 0.6 percent in relation to sterling, to $1.7274. Sterling fell to near a 16-month low in relation to the euro, down 0.3 percent to £0.6914, while the euro gained 0.3 percent to SFr1.5644 against the Swiss franc, a 15-month high.

The Swiss franc, which is usually seen as a safe investment, has suffered due to investors’ appetite for more risky investments, but it was also hurt by Tuesday’s release of weak producer price inflation data in Switzerland.

The euro was helped a bit by the ZEW survey of economic sentiment out of Germany, which showed a reading of 37 in July, well above the expected number of 22 and even further above June’s figure of 19.5.

Sterling suffered from yet another report, this one from the Royal Institution of Chartered Surveyors, of a weak housing market in the UK.

The dollar, meanwhile, was stronger on the prospect of further rises in US interest rates.