Zurich - Afp
The Swiss franc strengthened to a new high against the euro on Monday, amid fears that the eurozone debt crisis was spreading. At 2:29 pm (1229 GMT), the Swiss currency traded at 1.1694 franc for a euro, marking a new peak since the previous high recorded at the end of June. Bank Pictet analysts explained that \"the weeks to come will be painful for more than one economy, starting with that of the United States, which is currently in a more precarious situation\" due to its debt. \"It would be the same for economies of several European countries which are considered to be in quasi-bankruptcy by the rating agencies,\" they added. Last week, the Swiss government said that it had noticed the first signs of cooling in its export-oriented economy owing to the rise of the franc. US President Barack Obama is to convene crisis talks Monday in a bid to raise the $14.29 trillion US debt limit, so as to stave off a debt default. Earlier Monday, the Bank for International Settlements warned that sovereign debt crises are expected to widen to more countries in coming years, and public debts are increasingly likely to be viewed as risky assets.