Swiss Franc Eyes Yen's Borrowing Role Amid Low Rates

Rabobank analysts have forecast that the US Dollar (USD) will continue to trade mostly between 0.81 and 0.82 against the Swiss Franc (CHF), limiting further gains in USD/CHF after its recent recovery.

The current exchange rate of USD/CHF stood at 0.8181 on Tuesday, a 0.10% increase from the previous day's close. Rabobank identifies a potential support level for the franc: 'The 50-day sma at USD/CHF 0.81 is likely to act as support.'

The Swiss National Bank's zero-interest rate policy makes borrowing francs relatively cheap, which could increase demand for the currency.