The Swiss franc ticked higher versus the euro and the dollar on Friday, as investors shied away from stocks on fears the problems in the US housing and credit markets may hit the broader economy. "The nervousness prevails, with the euro/franc largely a slave to price action on international equity markets," UBS economist Reto Huenerwadel said.
The franc was 0.13 percent higher against the euro at 1.6351 francs per euro, having touched a 5-month high against the single European currency of around 1.6176 last week. The franc was also trading higher against the dollar at 1.2057 francs per dollar.
The franc has come under pressure as investors sell low-yielding currencies to invest in higher-yielding assets in so-called carry trades. Many investors believe the franc's strength against the euro will prove short-lived and that the Swiss currency will weaken again over the coming year as interest rate differentials continue to make it an attractive funding currency.