The Swiss franc rose for a third day against the euro as declining stock markets around the world damped demand for higher-yielding assets. Switzerland’s currency also gained against the New Zealand dollar and Swedish krona as equity markets fell across Europe. Billionaire investor George Soros said the recent advance in stocks was a “bear-market” rally. The Times of London reported the International Monetary Fund will raise its estimates for U.S. bad debt. “We’re seeing some of the optimism evaporating and gains in equity markets seem to be pausing,” said Ian Stannard, a senior currency strategist in London at BNP Paribas SA. The franc appreciated 0.4 percent to 1.5188 per euro as of 1:20 p.m. in Zurich. It climbed 1.1 percent to 1.5124 New Zealand dollars and 1.4 percent to 7.1618 krona. The Swiss Market Index headed for a third day of losses, declining 0.3 percent. The MSCI World Index slipped 0.8 percent. “It’s a bear-market rally because we have not yet turned the economy around,” Soros, 78, said in an interview yesterday with Bloomberg Television. “This isn’t a financial crisis like all the other financial crises that we have experienced in our lifetime.” Gains by the franc may be limited on speculation policy makers will try to counter any appreciation as they seek to revive the economy. The Zurich-based Swiss National Bank said on March 12 that it began buying foreign currencies to battle the recession. The central bank also cut the main interest rate to near zero and bought corporate bonds to ward off deflation. “The market will get nervous about intervention from the SNB should we see more gains against the euro,” Stannard said. It may drop to 1.59 per euro in three months, he said.

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