The Swiss franc was trading below nine-month peak against the euro in thin holiday conditions on Tuesday after an intervention scare a day earlier, but was expected to hold ground against the single currency. "The interest differential on the money market is very narrow and we should see euro/Swiss continue to trade below 1.50," said Marcus Hettinger, an analyst with Credit Suisse.
"Of course the risk of intervention increases the stronger the franc is, but the SNB never said 1.50 is the line in the sand. It was a market perception." The franc was trading at 1.4967 against the euro, down 0.2 percent in late New York trading. It hit a peak of 1.4876 on Monday. Against the dollar, the franc was up 0.1 percent at 1.0446. The franc had retreated to a three-month low against the greenback last week.
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