Swiss currency gains on Libya turmoil

ZURICH: The Swiss franc gained strength Tuesday, resuming its advance to new highs as the traditional safehaven currency got a boost from the turmoil in Libya and the Middle East, analysts said.

The euro bought 1.285 francs by mid-afternoon (1500 GMT), down from 1.297 francs on Monday while the Swiss unit also climbed 0.8 percent to $0.939.

Analysts at Pictet banks and Zuercher Kantonalbank (ZKB) said the latest fall in the euro below the 1.30 francs threshold in recent days was due to events in North Africa and the Middle East.

"If the situation worsens on the African continent, the Swiss franc could appreciate sustainably," ZKB analysts said, targetting 1.278 francs.

The Swiss franc reached record highs against major currencies in December and January -- touching close to 1.24 against the euro -- driven by the eurozone debt crisis and uncertainty over the global economic recovery.