Swiss Franc Steadies vs Euro After Previous Day’s Rally |
ZURICH, Nov 24 (Reuters) - The Swiss franc traded near flat against the euro on Wednesday after the safe haven currency rose sharply in the previous session on worries about the European debt crisis and tensions in the Korean Peninsula.
At 0813 GMT, the Swiss franc was largely unchanged versus the euro compared to the New York close, trading at 1.3323 per euro after breaking through the 1.33 threshold on Tuesday as investors sought safe assets.
"We think that over a one-month period, there is a possibility that the euro could go up to 1.36. Over the longer term, we are neutral as we see stable interest rate differentials. We see it at 1.34," Credit Suisse analyst Marcus Hettinger said.
Against the dollar, the franc was 0.2 percent firmer at 0.9949 per dollar, as the return to parity continued to elude the greenback.
Hettinger said the dollar could touch parity against the franc in the next couple of days as the recent rise in U.S. interest rates has been positive.
"But once interest rates come down, the dollar will lose that interest rate support and will weaken again," Hettinger said.
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