The Swiss franc rose to a record high against the euro on Tuesday as investors worried about the global economic recovery and piled money in traditional safe haven currencies such as the franc. Analysts and traders said that rising uncertainty about the economic recovery in the United States and worries about a double-dip recession there would push the Swissie up further in the near future.
However, the Swiss National Bank was unlikely to resume its currency interventions, which it shelved at its policy meeting in June, as the Swiss economy is still recovering strongly and the risks of deflation look contained. The franc rose 0.5 percent against the euro compared to the New York close, trading at 1.2926 per euro, after hitting a new record at 1.2910 earlier in the session. The franc rose 0.3 percent against the dollar to 1.0230 per dollar. A Zurich-based trader said that the next major support level for the euro was around 1.2890 and then 1.2830 and 1.2750. But so far, the market did not expect the central bank to intervene again.
Comments
Comments are closed.