ZURICH: The Swiss franc tracked the euro higher against the dollar on Tuesday, both bouncing off fresh four-month lows notched up earlier in the session as swelling talk of Greece leaving the euro zone kept the pressure on the single currency.
The franc stuck tightly to the 1.20 cap against the euro imposed by the Swiss National Bank last September to prevent the economy from sliding into recession. On Monday, SNB chairman Thomas Jordan reiterated the central bank's commitment to the cap and willingness to take further measures to defend the franc, if necessary.
The franc had fallen against the greenback in the wake of a softening euro during Monday's session, with investors selling stocks and buying dollars as resurgent euro zone debt concerns sapped risk appetite.
After pushing through a key resistance level, the franc traded at its lowest against the dollar since January 23, with analysts saying it could fall further.
"USD/CHF not only broke through the .9317/42 resistance area but made a daily New York close above it," said technical analysts at Commerzbank in a note.
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