The Swiss franc pared some of recent losses against other major currencies on Tuesday as investors turned more cautious on riskier assets again on renewed economic concerns. "Risk aversion remains the main driver for the franc," said Ronald Plasser, analyst at Austrian RZB.
"The boost for the euro and the dollar from the US plans to rescue the mortgage firms Fannie Mae and Freddie Mac is dwindling a bit," he said. The franc rose 0.2 percent against the euro compared to the New York close, trading at 1.5954 per euro at 0644 GMT.
The franc ticked 0.2 percent higher against the dollar to 1.1291 per dollar, after having hit a near 9-month low at 1.1372 on Monday. The dollar should rise further against the franc over the next 12 months as the US economy was likely to regain traction before Europe, Plasser said.
But for the near term, markets might have been too bullish on the greenback, he said. "The market is really pessimistic about European economies including Switzerland and tends to forget that there are still a lot of risks for the US, too."
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