Swiss franc rises to record high against euro

ZURICH: The Swiss franc rose to record highs against the euro on Tuesday, breaching the 1.10 per euro barrier for the first time amid persistent uncertainties over the US debt outlook.

By mid-morning, the euro was quoted at 1.0987 francs, breaking the previous record of 1.1026 francs, before easing back.

The Swiss currency was also strong against the US currency, at 0.7758 francs per dollar, slightly off the record 0.7729 set Monday.

"With fears that ... the US might get a (ratings) downgrade, investors are buying Swiss francs," considered a safe haven, analysts from Pictet bank said.

"The markets did not appreciate the deal" to raise the US debt ceiling, analysts from the Zurich Cantonal Bank (ZKB) said, adding that the US top rating of AAA could be downgraded as budget cuts were deemed insufficient.

The US agreement, approved by the House of Representatives late Monday, is expected to pass in the Senate on Tuesday.

Copyright AFP (Agence France-Presse), 2011