Forex - USD/CHF tests record low amid Japan nuclear fears

Forex Pros – The U.S. dollar was trading close to an all-time low against the Swiss franc on Tuesday, amid reports of rising radiation close to Tokyo, following an explosion at the at the stricken Fukushima Daiichi nuclear power plant in Japan.

USD/CHF hit 0.9206 during European morning trade, the pair’s lowest since March 2; the pair subsequently consolidated at 0.9227, shedding 0.16%.

The pair was likely to find short-term support at 0.9199, the low of March 2 and the all-time low and resistance at 0.9316, Monday’s high.

Japanese authorities said an explosion at the No. 2 reactor at the Fukushima Daiichi nuclear power plant, located 155 miles northeast of Tokyo, appears to have caused damage. Some staff had been evacuated from the facility as radiation levels at the site rose sharply.

In a televised address following the blast, Japanese Prime Minister Naoto Kan said "Substantial amounts of radiation are leaking in the area," and urged people within 30 kilometers of the plant to stay indoors. "We are making utmost efforts to prevent further explosions or the release of radioactive materials," he said.

The Swissie was slightly higher against the yen, with CHF/JPY easing up 0.06% to hit 88.35.

Later in the day, the U.S. Federal Reserve was to announce its federal funds rate. The U.S. was also to publish official data on manufacturing activity in the New York region.