The Swiss franc was trading near flat versus the euro on Wednesday, but was expected to strengthen later as investors take flight to less risky investments as uncertainty in equity markets persists.
"The euro will stay under pressure due to volatility in the markets. The Swiss franc will profit from being seen as a safe-haven currency," said Clariden Leu's Sandro Baechli.
The Swiss franc was trading slightly near flat versus the euro at 1.6019 francs per euro. Against the dollar, the franc was trading 0.15 percent lower at 1.0966 francs per dollar compared to Tuesday's New York close, as the dollar recovered from lows hit during the previous session after the emergency rate cut by the US Federal Reserve.
The franc hit its highest level ever against the dollar last Wednesday, at around 1.0839 francs per dollar, but has lost ground since then. Financial turmoil and fears of a US recession have boosted the Swiss franc, as traders unwind risky carry trades in which they sell the franc to invest in higher-yielding assets.
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