ZURICH: The Swiss franc climbed against the dollar on Tuesday towards the previous session's near one-month high, with investors wary of risk after a rise in Spain's borrowing costs.
The euro rallied on Monday after a vote in Greece reaffirmed its commitment to international bailout agreements. But then Spain's bond yields began to rise, undermining Madrid's ability to fund itself less than two weeks after it sought foreign assistance to ease its bank sector woes.
"Greek election relief fades and pressure resumes," Credit Agricole said in a note.
The franc has largely been trading in tandem with the euro after the Swiss National Bank set a cap of 1.20 per euro on the safe-haven currency, to shield the economy from deflation and a recession.
Swiss growth proved surprisingly strong in the first three months of this year, but the SNB warned at its policy review last Thursday that momentum would slacken significantly in the months ahead.
The ZEW investor sentiment index for June will be released at 0900 GMT on Wednesday, while trade figures for May will be released at 0600 GMT on Thursday.
The franc rose 0.2 percent against the dollar to trade at 0.9522 by 0612 GMT compared to the New York close.
The franc was flat against the euro at 1.201.
With the euro boosted broadly by the results of the Greek election, the franc had risen as high as 0.9417 on Monday, its strongest since May 22.
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