The Swiss franc gained against the euro on Tuesday due to its safe haven appeal as the single currency slipped across the board on concerns about rising borrowing costs, particularly in Ireland. "We view EURCHF as the best vehicle to express the view that problems in the Eurozone periphery are once again heating up, with Irish spreads in particular having blown out to record levels," UBS analysts wrote in a note.
The yield on Irish 10-year bonds hit 8 percent for the first time on Monday, extending a month-long climb on worries about a political impasse in Dublin ahead of a budget vote. The franc was 0.4 percent firmer against the euro compared to the New York close, trading at 1.3388 francs per euro at 0741 GMT. The franc was 0.1 percent higher against the dollar at 0.9648 francs per dollar. Credit Suisse analysts said the dollar had been consolidating below the 0.97 area on Monday and they expect the greenback to test record lows against the franc again.