Swiss franc at new record vs dollar on Mideast turmoil

ZURICH: The Swiss franc soared to its highest ever against the dollar on Thursday, lifted by ongoing concerns about political unrest in Libya and fears that turmoil could spread to other oil-producing states in the region.

The revolt in the desert nation pumping nearly 2 percent of the world's oil output and the threat of contagion drove Brent crude to $113 a barrel. European equities were set to fall on concerns about the rising oil price crimping growth.

Traders worry that unrest in Libya could spread to bigger oil producers such as Algeria and Saudi Arabia, which would be certain to disrupt oil supplies and harm the global economy. These concerns also sent the franc up against the euro on Thursday.

Geopolitical and economic tensions have been lifting the Swiss franc, which traders often buy at times of uncertainty. It gained strongly against the dollar last year and rose some 15 percent against the euro, hitting a peak of 1.24 per euro in late December, helped by concerns about euro zone debts.

"The franc as a safe-haven is benefitting from geopolitical risks," said Commerzbank analyst You-Na Park. "That's been the main driver of the last few days."

The franc touched a new all-time peak of 0.9271 per dollar, according to Reuters data, and was trading up 0.3 percent compared to the New York close at 0.9300 per dollar at 0726 GMT.

Commerzbank said its targets were 0.9120 and possibly the psychologically important 0.9000.

Against the euro, the franc was up 0.4 percent to 1.2769.