FOREX-Dollar falls broadly, at all-time low vs Swissie

* Dollar falls broadly, hits record low vs Swiss franc

* Dollar hits 6-1/2 week low vs yen, 7-week low vs Aussie

* Euro recovers vs dlr, moves exaggerated by thin trade

(Updates prices, adds quote)

By Jessica Mortimer

LONDON, Dec 28 (BestGrowthStock) – The dollar fell broadly on
Tuesday, hitting an all-time low against the Swiss franc, which
was lifted by corporate buying, and a six-and-a-half week low
versus the yen, while the euro recovered after recent weakness.

The Swiss franc was the biggest gainer among major
currencies, with traders citing year-end buying by Swiss
corporates. Moves were exaggerated in very thin post-Christmas
trade, with UK markets closed for a public holiday, they said.

The euro also jumped against the dollar after stop-loss
orders were triggered at key chart points around $1.32. It rose
to $1.3274 (EUR=: ), its highest in more than a week and extending
its recovery from last week’s three-week low of $1.3055.

“There will be some year-end positioning, but markets are
very thin which is why we are seeing quite strong movements,”
said Youna Park, Commerzbank currency strategist in Frankfurt.

The euro (EUR=: ) was last up 0.8 percent at $1.3262.

Its next target is $1.3278, a 50 percent retracement of its
fall earlier this month from $1.3500 to $1.3055, and then around
$1.3330-35, which includes a 61.8 percent retracement of the
same decline as well as the pair’s peak in August.

“Essentially the euro is rising on short-covering. I think
we’ll need to watch the market a bit more to see how investors
plan to allocate their money after Christmas and in the new
year,” said Estuko Yamashita, chief economist at Sumitomo Mitsui
Banking Corp in Tokyo.

The euro also gained against sterling, rising 0.6 percent to
a five-week high of 85.93 pence (EURGBP=D4: ), with the British
currency still hampered by concerns that planned harsh austerity
measures will dampen an already fragile UK economic recovery.

Many in the market expect to see more euro weakness in the
new year, however, due to worries some euro zone countries such
as Spain and Portugal may need rescue programmes, tracking a
path trodden by Greece and Ireland.

Year-end flows were broadly negative for the dollar, which
lost close to 1 percent against a basket of currencies (.DXY: ) to
79.596, its lowest in 11 days, to take it below its 100-day
moving average around 79.808.


The dollar fell around one and a half percent against the
Swiss franc (CHF=: ) to a low of 0.9439 francs. The euro also lost
more than 1 percent to hit a low of 1.2495 francs (EURCHF=: ),
near an all-time low of 1.2435.

“Swiss franc buying is from local pension funds and
corporates. Amounts are big and could be end-of-year flows,” a
London-based trader said.

The Swiss franc has gained broadly recently as investors
seek a safe-haven alternative to the euro, with sentiment
towards the single currency dented by debt problems in
peripheral euro zone countries.

The latest positioning data showed speculators increased
bets against the euro in the week ending Dec. 21, while they
trimmed bets against the U.S. dollar and boosted long positions
in the Swiss franc. [IMM/FX]

Sentiment towards the euro remained fragile and many traders
think it could retest its Nov. 30 low against the dollar of
$1.2969 once it breaks out of its recent range.

“The euro is oscillating in thin volumes, no new news is
expected on the euro zone periphery and it would take a strong
driver to pull the euro out of its $1.31-$1.33 range,” said
Stephan Maier, currency strategist at Unicredit in Milan.

Euro bears had been frustrated by the currency’s firm
support for more than a week at its 200-day moving average just
below $1.31 and were giving up their positions for now.

The dollar also dropped to a 6-1/2 week low around 81.84 yen
(JPY=: ), according to Reuters data, pressured by offers from
Japanese exporters, many of whom will be away later this week
for the year-end and New Year holidays.

The dollar slipped below key support at its 55-day moving
average around 82.59 yen and at 82.40 yen, around the bottom of
a daily ichimoku cloud.

Broad rises in commodity prices helped buoy the Australian
dollar (AUD=D4: ) to a high of $1.0150, its strongest since Nov.
11 and close to a 28-year high of $1.0182.
(Additional reporting by Hideyuki Sano in Tokyo, Editing by
Catherine Evans)

FOREX-Dollar falls broadly, at all-time low vs Swissie