The US dollar fell to a 4-day low against the Swiss franc on Tuesday, after a report showed consumer prices in Switzerland rose more-than-expected in March, giving rise to expectations that the Swiss central bank may follow the European Central Bank (ECB) in monetary tightening.
USD/CHF pair fell to 0.9160 during European late morning trade, its lowest since March 31, before consolidating at 0.9171.
The pair is likely to find support at low of 0.9125 hit on March 31, and resistance at Wednesday’s high of 0.9294.
Consumer prices in Switzerland rose 0.6 percent in March month-on-month, taking the annual inflation rate to 1 percent from 0.5 percent in the previous month, the federal statistics office said on Wednesday.
The euro also dropped against the Swissie, with EUR/CHF losing 0.33 percent to hit 1.3115.
Also, the Federal Open Market Committee (FOMC) minutes on Tuesday indicated that US policymakers were divided over ending stimulus this year.