Euro at record low versus Swiss franc

The euro fell to a record low against the Swiss franc on Monday, with more losses likely as disagreement among policymakers over how to solve Greece's debt crisis unsettled investors and boosted the safe-haven allure of the franc. But the euro managed to gain versus the US dollar, helped by central bank demand and after US stock prices came off early lows. Concerns about a stalling US economic recovery and a ballooning budget deficit also weighed on the dollar.
The single currency dropped as low as 1.2004 Swiss francs on trading platform EBS. Traders expect the pair to fall below the 1.20 level, where large option structures were noted, with a break below likely triggering more euro selling. European leaders are due to finalise a new rescue package for Greece at a Brussels summit on June 23-24. But deep divisions remain about how to get the private sector involved. Concerns are growing that Greece will eventually have to restructure its debt.
"If a compromise cannot be reached between these positions, there is a chance that the second rescue effort disintegrates, leaving Greece at the mercy of the bond markets," said Karl Schamotta, market strategist at Western Union Business Solutions, in Victoria, British Columbia.
The euro last traded at 1.2068 francs, down 0.2 percent on the day. Earlier, it fell to a session low near 1.20 francs in thin liquidity after a break below 1.2050 triggered stop-loss orders and system-related selling. "The Swiss franc is the currency to be in right now," said Greg Salvaggio, vice president of trading at Tempus Consulting in Washington.
The euro rose 0.5 percent to $1.4413, near a session high of $1.4430 and rising above resistance at the 55-day simple moving average at $1.4398. Resistance is seen at a concentration of former support levels around $1.4430/50, which includes previous intraday peaks in May and a 38.2 percent retracement of the May-to-June rise.
The rush toward safe-haven assets boosted the Swiss franc and kept the dollar pinned near record lows hit last week. The dollar was last down 0.7 percent at 0.8372 franc. The Swiss National Bank meets this week for a rate decision and is unlikely to signal any risk of intervention to cap the franc's strength. The New Zealand dollar tumbled after a series of powerful earthquakes shook Christchurch, four months after the city was badly damaged by a 6.3 magnitude quake. The kiwi dropped 0.6 percent to trade at $0.8158.