The Swiss franc rose against the euro on Monday, climbing back towards recent 7-year highs, as fears about a global recession intensified, boosting the unwinding of carry trades and the safe-haven buying of franc. "Recession fears and their possible impact on Eastern European economies have taken a solid grip on FX Markets of late," UBS analyst Reto Huenerwadel said.
"The resulting euro weakness, market positioning for a further unwind of carry trades and the break of key technical support levels pushed euro-franc lower on Friday," he said. The franc rose about 1 percent against the euro compared to Friday's New York close to 1.4544 per euro, moving back towards a seven-year high hit on Friday at 1.4411 per euro.
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