The Swiss franc remained firm against the euro on Tuesday, keeping market speculation about an intervention from the Swiss National Bank alive. "The SNB has renewed its pledge to fight a rise in the franc," said Ronald Plasser, fixed income portfolio manager at Bankhaus Schelhammer & Schattera. "But I think the SNB's limit is still 1.50."
The franc was nearly flat against the euro compared to the New York close, trading at 1.5098 per euro. It was also little changed against the dollar at 1.0315 per dollar. Plasser said that given the SNB's threat the franc was set to trade in the current range over the next quarters as the historically narrow interest rate difference with the euro zone was boosting the franc while the SNB limited any potential rise.