Alexa

Dollar rises; franc falls on move to cap value

Dollar rises; franc falls on move to cap value

The U.S. dollar was rising against the Swiss franc Tuesday after Switzerland's central bank took the unusual step of putting a cap on the value of its currency. The dollar was also rising against the euro, pound and yen.
The Swiss franc, considered a safe-haven currency by investors, has risen sharply against the dollar and euro this year on worries that the global economic recovery is slowing. The Japanese yen and the dollar are also considered safe-haven currencies.
The Swiss National Bank says it will spend whatever it takes to keep the franc from rising above 1.20 francs per euro.
The dollar jumped to 0.8614 Swiss franc midday Tuesday, its highest point since May 27. It was worth 0.7861 Swiss franc late Monday. The euro fell to $1.3983 from $1.4091. It was the first time the euro has fallen below the $1.40 mark since July 13.
Also helping the U.S. dollar was positive economic data. The Institute for Supply Management said that its index for service companies, such as restaurants and hotels, rose to 53.3 in August, up from 52.7 in July. Any reading above 50 indicates expansion.
In other trading Tuesday, the British pound fell to $1.5934 from $1.6098. The dollar rose to 77.55 Japanese yen from 76.83 Japanese yen. Meanwhile, the dollar fell to 99.06 Canadian cents from 99.11 Canadian cents.
The dollar was also rising against other currencies around the world, including those in Australia, New Zealand, South Korea, Hong Kong and Brazil.


Updated : 2021-04-19 03:09 GMT+08:00