June 8, 2010 / 3:38 PM / 7 years ago

Euro rises vs dollar, Swiss franc; intervention cited

NEW YORK, June 8 (Reuters) - The euro rose to a session peak against the dollar on Tuesday and pared losses against the Swiss franc, with traders citing possible intervention by the Swiss National Bank to weaken that currency.

The euro rose to $1.1986 EUR=, according to Reuters data, up 0.6 percent on the day, and also bounced abruptly to 1.3820 Swiss francs EURCHF= from an all-time low around 1.3746 francs. The SNB refused to comment on talk of intervention, but traders said the sudden jump was consistent with official SNB purchases of the euro. For more, see [ID:nWEA5363]

"Certainly the price action minutes ago seemed to suggest intervention, though we've no official confirmation," said one market participant at a U.S.-based bank.

The SNB has been intervening to weaken the franc since early 2009 to help it fight deflation but has slowed activity in recent weeks. "They backed off as the euro fell below 1.40 francs but are still a bit uneasy," the market participant said.

Reporting by Steven C. Johnson, Editing by Chizu Nomiyama

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