ZURICH: The Swiss franc ticked up against the dollar on Thursday to touch a three-month high, as some sought out safe-haven investments due to lingering worries about the euro zone's prospects.
The franc has traded almost in tandem with the euro since the Swiss National Bank imposed a 1.20 francs per euro cap on Sept. 6 to prevent the runaway franc from battering the country's exports and pushing the Swiss economy into recession.
"There are plenty of obvious reasons why it should be in demand right now such as weak growth forecasts elsewhere (euro zone) and concerns the Greek bailout figures are woefully inadequate," said Informa Global Markets analyst Tony Nyman.
Data released on Wednesday indicated the euro zone economy is in danger of tipping into recession, with Germany unexpectedly weak along with France.
The franc rose 0.3 percent against the dollar to trade at 0.9077 by 0739 GMT compared to the New York close, hitting an intra-day peak that was its strongest since Dec. 1.
The franc was flat against the euro at 1.2056.
Questions over the SNB's independence -- and its ability to cap the franc at 1.20 per euro -- have been raised after the resignation of former chief Philipp Hildebrand over a currency trading scandal last month.
The Swiss government had tasked a legal expert to review the central bank's institutional oversight. In a report released on Wednesday he determined no changes were needed.
"The legal opinion on SNB supervision did not soften the SNB's current monetary policy based on a lower boundary in EURCHF in any shape or fashion," UBS economist Reto Huenerwadel said.
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