Tuesday, 24 July 2012 13:29
ZURICH: The Swiss franc hovered on Tuesday near a 19-month low it hit against the dollar the previous session, as it tracked a weak euro due to fears Spain will need a full-scale bailout.
The franc has largely traded in tandem with the euro since the Swiss National Bank set a cap of 1.20 per euro last September as investors fleeing the single currency pushed the safe-haven unit up 20 percent in just a few months.
On Monday, 10-year Spanish bond yields jumped as high as 7.596 percent, the highest since the euro was created in 1999. That saw the euro drop for a fourth straight day against the dollar to hit $1.2067, the weakest since June 2010.
The franc was steady against the dollar from the New York close to trade at 0.9914 by 0654 GMT, off a new 19-month low hit on Monday as the currency eyed parity with the greenback.