SINGAPORELONDON, March 16 Reuters The euro and Swiss franc regained some lost ground on Thursday, as markets reacted positively to the Swiss central bank39;s support for Credit Suisse, ahead of a difficult meeting for ECB rate setters.

The euro was up 0.4 at 1.06225 having lost 1.4 a day earlier, its biggest percentage fall in six months, as the focus of fears about the banking sector spread across the Atlantic from the collapsed U.S.based Silicon Valley Bank to the much larger Credit Suisse.

Some calm was restored to markets after the Swiss lender said on Thursday it would borrow up to 54 billion from the Swiss National Bank to shore up liquidity and investor confidence, after its shares on Wednesday plunged as much as 30.

That helped the Swiss franc to strengthen, and the dollar dipped 0.92 against the franc , to 0.9248, reversing some of its 2.15 surge on Wednesday the largest daily gain since 2015.

Paul Jackson, global head of asset allocation research at Invesco, said the nature of the banking system, such as its interconnectedness, meant that any troubles in the sector made investors particularly jittery.

Its like walking through a forest at night, and if youre nervous and you hear a sound which could be a squirrel or it could be a bear, you react as if its a bear.

But the news of the Swiss National Bank39;s support for Credit Suisse did calm the mood somewhat.

Now, Credit Suisse has the clout of the Swiss National Bank covering its back, which is a…