ZURICH: The Swiss franc was steady against the dollar on Friday after pulling back from a more than seven month high in the previous session as resurgent concerns over a looming US fiscal crisis shook risk appetite and lifted the safe-haven greenback.
US president Barack Obama and the Republican-dominated Congress remain locked in conflict over how to avoid the so-called fiscal cliff that would trigger budget cuts and tax increases, threatening the United States' economic recovery.
The franc has tracked the euro closely ever since the Swiss National Bank imposed a 1.20 per euro cap on the swissie to stave off recession and deflation. The pair have moved higher against the dollar in recent sessions as European leaders struck agreements on banking supervision and a Greek debt buyback was well supported.
"Nonetheless, as reflected in its drop overnight any increase in risk aversion will limit the ability of the euro to move higher," said Credit Agricole head of foreign exchange strategy Mitul Kotecha in a note.
"Additionally the euro will be restrained by caution expressed by the Greek finance minister over the country's future highlighting that Greece is not out of the woods yet."
The franc was little changed against the dollar compared to the New York close, trading at 0.9133 francs per dollar by 0806 GMT.
The franc was steady against the euro at 1.2076 francs to the euro.
Center>Copyright Reuters, 2012
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