Franc Gains vs. Dollar, Tests Resolve of SNB to Keep Ceiling

The Swiss franc appreciated for the second day against the US dollar today as fears of escalating sovereign-debt crisis in Europe forced investors seek a safe haven. The currency was flat against the euro.
Forex traders become more and more tense as the Greek elections near and Spain’s trouble mounting. The Swiss National Bank is hard pressed to keep the cap of 1.20 francs per euro as market participants flock to the safety of the franc. The foreign-currency reserves of the SNB jumped last month, hinting that the central bank increased euro purchases to maintain the ceiling. So far, the SNB has managed to support the ceiling, but analysts are skeptical about its ability to do so for long.
USD/CHF fell from 0.9598 to 0.9591 as of 8:20 GMT today, following the earlier advance to 0.9627. EUR/CHF stayed flat at 1.2010.

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