ZURICH: The Swiss franc gained slightly against the US dollar on Tuesday, as Asian emerging market currencies extended losses on the prospect of a beginning withdrawal of stimulus by the US Federal Reserve. The dollar was largely steady against a basket of major currencies as 10-year US Treasury yields marched overnight to two-year highs, offsetting fears of the impact of Fed stimulus reduction. Meanwhile, the rupee cratered to a record low of 63.30 per dollar on Monday, and Indonesia's rupiah and Brazil's real both skidded to four-year lows. The US dollar's moves were limited as the market awaited the minutes of the US Federal Reserve's July policy meeting due on Wednesday, and its failure to rally in spite of plunges in high-yielding currencies suggested market participants are positioning for a stimulus tapering, according to dealers. As a safe-haven currency, the franc rose to record levels through the global recession before pulling back after the Swiss National Bank imposed a 1.20 per euro cap. It remains at historically high levels despite recent apparent improvements in global economic conditions. The SNB has vowed to keep the cap in place for as long as needed. The franc rose 0.1 per cent against the dollar to trade at 0.9234 by 0644 GMT compared to the New York close. The franc was steady against the euro at 1.2317 per euro.

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