Swiss franc hits lowest since 2015 cap shock, dollar steadies

The Swiss franc's fall to its weakest since the collapse of an official cap in 2015 dominated major currency markets on Thursday, and the dollar recovered from a fall to 2-1/2 year lows.

The franc, held largely steady for the past two years between capital seeking the security of Switzerland and a campaign of official intervention against the currency, had already fallen almost 2 percent this week.

It sank by as much as another 1 percent against the dollar and the euro in morning trade in Europe, while other major currency pairs were broadly steady.

"The safe haven trade for the Swiss franc is starting to unwind," said Michael Hewson, chief markets strategist at CMC Markets in London.

By 1020 GMT, the franc had steadied a little to trade 0.6 percent weaker at 1.1231 francs per euro EURCHF. It lost 0.9 percent to 0.9587 francs per dollar.