The Swiss franc weakened a hair against the dollar, alongside the euro, as investors remained ill at ease about the euro zone's debt crisis, with a rise in Spain's borrowing costs in particular focus on Tuesday. Safe-haven buying spurred the franc to near parity with the euro last August, threatening to tips Switzerland into recession. To lessen the risk of deflation and contraction, the Swiss National Bank (SNB) set a cap of 1.20 per euro on the franc.
The franc was down 0.07 percent against the dollar to trade at 0.9588 by 0548 GMT compared to Monday's New York close. The franc was flat against the euro at 1.2014. The franc has been trading just shy of that mark versus the euro in recent weeks, as the euro zone crisis churns on and spectre of Greece exiting the union rises. But it has weakened slightly since SNB Chairman Thomas Jordan said in a newspaper interview recently.
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