USD/CHF hit 0.9165 on Friday, the pair’s lowest since May 4; the pair subsequently consolidated at 0.9474 by close of trade, 2.07% lower for the week.
The pair was likely to find support at 0.9073, the low of March 2 and resistance at 0.9246, Friday’s high.
The dollar weakened broadly on Friday after weak U.S. inflation data warranted continued monetary easing by the Federal Reserve.
The Department of Labor said U.S. consumer inflation fell 0.3% in November, down for the first time in six months on the back of lower gasoline prices, bringing the annualized rate of inflation to 1.8%.
The Swiss franc was little changed against the dollar on Thursday after the Swiss National Bank kept interest rates unchanged at zero in a widely expected decision and said it was ready “to take further measures at any time" should conditions require.
The SNB forecast that the economy will expand between 1% and 1.5% next year and revised down its forecast for consumer inflation to 0.1%, compared to a previous forecast for an increase of 0.2%.
The central bank reiterated that it would purchase foreign currencies in “unlimited quantities” in order to maintain the minimum exchange rate floor of 1.20 per euro.
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