The Swiss franc was treading water against the both the dollar and the euro on Tuesday, as investors reckoned a second bailout for Greece still did not mean the end of the currency bloc's debt troubles. The franc was flat against the dollar to trade at 0.9111 compared to the New York close. The franc was also unchanged at 1.2070 against the euro.
The agreement, which will involve financing of 130 billion euros and aims to cut Greece's debt to 121 percent of GDP by 2020, helped the euro up against the dollar. The Swiss National Bank capped the franc at 1.20 per euro on September 6 to shield the economy from recession.
Safe-haven investors worried about euro zone debts had pushed the franc up nearly 20 percent in just a few months. "Ongoing uncertainties are set to keep market mood cautious," economists at Credit Agricole said. "Eurogroup negotiations and Troika assessment of Greek public debt suggest that considerable near-term risks remain even with a second bailout," they also said.
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