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Zurich - The Swiss franc reached a historic high point against the euro on Tuesday when the Swiss refuge currency continued to strengthen.
The euro dipped to 1.2912 Swiss francs, a record low level since the European currency was introduced in 1999, after hovering either side of the symbolic 1.30-franc barrier for the past week.
"The psychological barrier of 1.30 has definitely been breached," said analysts at Zuercher Kantonalbank (ZKB).
Analysts believe the Swiss franc will continue to strengthen to record levels against the euro, despite a pattern of intervention by the Swiss central bank earlier this year to dampen its rise and avoid deflation.
"The Swiss National Bank will not be able to stop the rise of the Swiss franc, after it intervened several times these last two years, without success," said analysts at Pictet private bank.
The euro was being traded at about 1.50 francs before it started to decline in late December 2009.
The Swiss franc made similar gains against the dollar on Tuesday, leaving the US currency just above 1.02 Swiss francs.
The dollar was fast approaching historic lows seen in early 2008 and last December, while the pound suffered the most, dipping to 1.572 Swiss francs.
Switzerland's biggest trading partners are in the eurozone.
