Dollar At 2-1/2-year High Against Franc

The U.S. dollar hit a multi-year high against the Swiss franc in thin trading on Thursday, with major markets closed for New Year holiday.

Forex trading was subdued, as major financial markets in Asia, Europe and the U.S. remain closed today and economic news was few.

The dollar ended 2014 in a positive note, amid speculation that the Federal Reserve will raise rates this year amid signs of improving economy. Plunge in oil prices also attributed to the dollar’s strength.

While the central banks in Europe and Japan are pursuing easy monetary policy, the Fed is expected to raise rates by mid 2015.

Prospectus of higher rates are attracting investors to the dollar, as they would boost returns denominated in the currency.

In economic news, China’s official measure of manufacturing activity grew at a slower pace in December, adding to signs of slowdown in the economy. Meanwhile, growth improved for a second straight month in the non-manufacturing sector.

The CFLP Manufacturing Purchasing Managers’ Index fell to 50.1 from 50.3 in November, data from the National Bureau of Statistics showed Thursday. The index eased for the third month in a row, yet a score above 50 signals expansion in activity.

The greenback climbed to 0.9949 against the franc for the first time since July 2012. At yesterday’s close, the pair was worth 0.9940. The next possible resistance for the greenback-franc pair is seen around the 1.00 mark.

The greenback also rose to 1.5550 against the pound, compared to yesterday’s closing value of 1.5575. The next possible resistance for the greenback is seen around the 1.54 mark.

Meanwhile, trading were muted for the greenback-yen and the euro-greenback pairs.

Published: 2015-01-01 09:40:00 UTC+00

Dollar At 2-1/2-year High Against Franc