WORLD FOREX: Franc Falls Vs Dollar, Euro After Recent Surge





The Swiss franc fell against the euro and the dollar Thursday as many investors cashed out from its recent surge.

Some market participants said the franc's rally, which has consistently shattered record-high levels in the past few sessions, was overdone. The euro had dropped to a record low of CHF1.2440 versus the franc Wednesday as investors shunned the single currency on euro-zone sovereign debt woes.

"The franc's rapid appreciation was due for a short-term correction," said Paresh Upadhyaya, head of Americas G10 FX Strategy at Bank of America Merrill Lynch in New York. "But fundamentally I don't think the trend of a higher franc will be reversed."

The dollar was slightly firmer against the euro, but the U.S. currency fell against many other currencies, such as the Australian dollar and the New Zealand dollar, as many investors sought higher returns amid the recent strength in U.S. stocks.

Upadhyaya said should U.S. data such as jobless claims due at 8:30 a.m. EST be stronger than forecast, it could support the dollar against the euro but the dollar would decline versus higher-yielding counterparts.

Thursday morning, the euro was at $1.3084 from $1.3098 late Wednesday, according to EBS via CQG. The dollar was at Y83.35 from Y83.55, while the euro was at Y109.07 from Y109.42.