- The Swiss franc was trading close to 16-month highs against the dollar on Monday and hit the highest level in more than a year against the euro as escalating tensions over the crisis in Ukraine spurred a flight from assets perceived to be risky.

USD/CHF dipped 0.04% to 0.8799, hovering just above the lows of 0.8775 struck on Friday, the weakest level since early November 2011.

The pair was likely to find near-term support at 0.8775 and resistance at 0.8840.

Demand for the traditional safe haven Swiss franc was spurred by fears over the unfolding crisis in the Ukraine, following Russian President Vladimir Putin’s decision to send troops into the Crimea region over the weekend.

Ukraine''s interim government has called for more international support to force Russian troops to leave.

The move sparked fears that the West will impose economic sanctions on Russia. Russia’s central bank hiked interest rates from 5.5% to 7% on Monday, after the rouble fell to new record lows against the euro and dollar.

The euro fell to its lowest level in more than a year against the Swiss franc, with EUR/CHF hitting lows of 1.2103, the weakest since January 2013, before pulling back up to 1.2125.

Investors were reluctant to test the Swiss National Bank’s minimum exchange rate floor of 1.20 per euro. The SNB put a cap on the franc against the euro in September 2011, in order to support exports and protect the country from a recession.

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