The dollar fell to a three-day low against the Swiss franc on Wednesday, driven by safe haven demand, as concerns rose over radioactive contamination in Japan and the growing unrest in the Middle East.
USD/CHF hit the lowest level since last Friday at 08980 during European late morning trade, before consolidating at 0.9009.
The pair is likely to find support at 0.8895, a low reached on March 16, and resistance at all-time low of 0.9089.
The Tokyo metropolitan government on Wednesday advised its residents not to allow infants to drink tap water, after it had found radioactive iodine exceeding the permitted levels, WSJ reported.
The unrest in the Middle East escalated as Syrian troops opened fire on protesters and Yemen’s president warned of civil war in the country if he was pressurized to resign.
The euro also weakened against the Swiss franc, amid renewed concerns over debt problems in Portugal. The EUR/CHF pair fell 0.47 percent to hit 1.2766.
The risk appetite for the single currency weakened on speculation that Portugal’s minority government may collapse today, as the country’s parliament votes on budget cuts that have divided lawmakers.