Reuters: Euro Hits Multiweek Lows, Breaks 1.20 Francs Floor

Posted On: April 17, 2012

From Reuters

Broad euro selling led the euro to dip below 1.20 Swiss francs for the first time since the SNB set that level as a cap for the Swiss currency in September 2011 in a bid to curb a sharp rise caused in part by investors fleeing the euro.

The euro hit a low of 1.1992 francs, according to Reuters data, before recovering to last trade at 1.2014. Traders said the SNB was buying euros around 1.20. An SNB spokesman said the bank would do all it could to defend the cap.

Against the yen, the dollar last traded down 0.1 percent at 82.38 yen.

Traders reported thin market conditions ahead of Good Friday and the Easter holiday weekend, but the U.S. March nonfarm payrolls report on Friday could sway sentiment.

The U.S. economy is expected to have added 203,000 jobs last month after February's 227,000 increase.

"A strong nonfarm payrolls report would be the dollar's ticket to push higher, though the full market reaction may have to wait until early next week when players return from the long holiday weekend," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.

"A below-forecast employment report would likely see the buck succumb to profit-taking and lead others to reconsider the outlook for Fed policy," he said.

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