The Swiss franc lost ground against the euro and the dollar on Tuesday as rising stock markets dampened its appeal as a safe haven currency. The Swiss franc has surged to a record high against the dollar of 0.9637 per dollar on Monday, well above parity, while it also hit a multi-year high versus the euro as worries about the US financial system lingered.
The franc pared some of the recent gains on Tuesday, falling 0.4 percent against the euro compared to the New York close, trading at 1.5548 per euro The franc was 0.1 percent weaker against the dollar at 0.9853 per dollar.
Swiss National Bank (SNB) chief economist Ulrich Kohli said the franc's appreciation was a source of concern though it was too early to say whether the rise would last, adding that overall the franc was now at 2006 levels. "Saying that the exchange rate is back to its 2006 level in real terms ignores the violence of the exchange rate correction of a 7 percent appreciation in under three months," said BNP Paribas analyst Eoin O'Callaghan.
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