The Swiss franc hit record highs versus the euro and dollar on Thursday and looked set to extend gains as lower US bond yields and concern about the eurozone debt crisis prompted investors to seek safety in the Swiss currency. The dollar weakened broadly, hitting a seven-week low against the yen and a 28-year low against the Australian dollar after a surprisingly strong Treasury auction on Wednesday put pressure on government bond yields.
The euro briefly climbed above $1.33 after breaking above its 20-day moving average around $1.3224, though gains were limited amid worries about debt troubles in Portugal and Spain. The euro fell as low as 1.2398 francs on trading platform EBS after a Swiss bank targeted an option barrier at 1.2400.
It last traded at 1.2497, down 0.1 percent. The dollar fell to 0.9371 francs on EBS as the euro/Swiss barrier gave way. It was last at 0.9399, down 0.6 percent on the day. The dollar slipped as low as 81.28 yen on EBS, its lowest in seven weeks and edging closer to a 15-year low of 80.21 yen hit in November. It later recovered to 81.49, still down 0.2 percent on the day.
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