With no economic data due from Switzerland this week, USD/CHF is largely following the dollar's performance, and the pair has formed a clear short-term uptrend.

Last week's higher than expected PMI reading and consumer price inflation from Switzerland pushed the pair to a three-week low of 0.9546 by Friday but has been higher steadily since then, mostly aided by the greenback's broad strength.

At 06:58 GMT, USD/CHF was at 0.9902, after rising as high as 0.9904, and from its previous close of 0.9874.

The pair seems to have a weak resistance (R1) around last week's high of 1.0064 (also 23.6 percent Fibonacci retracement from 1.1729 to 0.9463) and fresh dollar supportive could take it to 1.0331 (R2), the 38.2 percent Fibonacci.

Fresh news of North Korean attempt to upset the region probably aided dollar's strength Wednesday in Asian trade.

South Korea said North may have fired artillery shells into its own waters but near the disputed zone, media reports showed. It was, however, later clarified as part of a military drill by North Korea.