Swiss franc weakens to 3-week low vs euro

LONDON: The Swiss franc extended losses to fall to a three-week low against the euro on Tuesday as speculators continued to unwind long positions built in favour of the franc ahead of the gold referendum in Switzerland.

The euro rose to 1.2044 francs, its highest level since Nov. 7 and up 0.1 percent on the day.

The "Save our Swiss gold" initiative, defeated in a referendum on Sunday, would have compelled the Swiss National Bank (SNB) to boost its gold reserves to 20 percent of its assets, from about 8 percent. That would have threatened its ability to defend a 1.20 euro cap imposed three years ago.