The Swiss franc rose against all of its 16 most-traded peers, reaching a record against the euro, as investors sought safety on concern an austerity plan to stabilize Greece won’t resolve Europe’s sovereign-debt crisis.
The dollar gained for a third week against the euro, the longest since February, on speculation Greece’s parliament may reject Prime Minister George Papandreou’s plan to cut the budget deficit, win more aid and avoid default. The pound slid for a fourth week against the dollar after U.K. policy makers discussed more monetary stimulus. Growth in U.S. manufacturing cooled in June, a report next week may show.
“All these headlines continue to add to uncertainty and nervousness amongst investors and continue to create the choppy price action that we’ve been seeing,” said Paresh Upadhyaya, head of Americas G-10 currency strategy at Bank of America Corp. in New York. “Just as you feel you’re on top of the Greek situation, you get thrown a curve ball.”
The franc touched 1.1806 versus the euro yesterday, the strongest level since the shared currency’s 1999 debut. It gained 2.6 percent for the week to 1.1826 per euro, from 1.2142 on June 17. The franc gained 1.8 percent to 83.31 centimes per dollar, from 84.82 centimes a week earlier.
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