The Swiss franc rallied across the board on Wednesday, climbing to a two-week high against the euro, as fears that debt-stricken Greece could default and tumble out of the euro zone drove investors in search of safety.

Athens showed no sign of backing off in its tense negotiations with creditors on Tuesday, with Prime Minister Alexis Tsipras accusing them of trying to “humiliate’’ Greeks with more cuts.

As Greek bonds sold off, the Swiss franc, often seen as a safe haven by investors attracted by Switzerland’s healthy current account surplus, gained around 0.8 per cent against the euro to a two-week high of 1.0404 francs.

Against the dollar, the franc gained as much as 1 per cent to $0.9234, equalling last week’s peak, and its highest in a month.

“The implication that a Greek default is getting closer this week has been behind the increased demand for the Swiss franc, and it will remain so unless we get a deal in the next few days,’’ said Jane Foley, senior currency strategist at Rabobank in London.

“This is a big bind for the Swiss economy, but it’s very difficult when the demand for their currency is not just controlled by ordinary economic fundamentals, but by this more broad-based perception that that makes up a safe haven.’’

SNB meeting

A Swiss National Bank meeting on Thursday will be watched for any indications the bank is ready to loosen monetary policy further.

Foley argued that even a further SNB rate cut would not weaken demand from investors and Greeks worried about the possibility of capital controls.

A Reuters poll of economists released on Tuesday gave even odds of Greece defaulting on its debt payments, but the chances of it leaving the euro zone were still only one in three.

Fed statement

The euro was 0.3 per cent higher against a broadly weaker dollar at $1.2382. Investors were waiting for a US Federal Reserve statement due at 1800 GMT that could bolster expectations the Fed will raise rates for the first time in almost a decade over the coming months.

“The latest economic data is showing improvement, so how the Fed perceives them will be a key. We suspect the Fed will acknowledge the improvement, concluding the weakness in January-March was temporary,’’ said Shin Kadota, chief strategist at Barclays in Tokyo.

The dollar fell 0.2 per cent against a basket of major currencies to 94.82.

As commodity currencies fell across the board, New Zealand's dollar hit a five-year low of $0.6934.

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