1 June 2004, 10:42  Swiss franc firms as Saudi attack fans oil fears

The Swiss franc firmed on the dollar and the euro on Tuesday after a weekend attack in Saudi Arabia triggered safe-haven buying and heightened concerns about the impact of high oil prices on recovering economies. The dollar slipped to 1.2488/91 francs from 1.2528/33 francs late on Friday. There was no trading in Switzerland on Monday because of a public holiday. The euro eased to 1.5278/83 francs from 1.5300/05 on Friday. Crude oil prices rose after the attack in Saudi Arabia, which holds about a quarter of the world's petroleum reserves, raising concerns about disruptions to already stretched supplies. Dearer oil could hit the U.S. economy particularly hard and delay an expected U.S. interest rate rise, making holding the dollar less attractive. In contrast, the franc could benefit as it typically attracts buyers in times of international tension. As for Swiss data [CH-ECI], markets await the release of the purchasing managers index for May, due later on Tuesday, and consumer price data for May, due on Thursday. ///

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