LONDON, June 29 Reuters The Swiss franc rose on Wednesday to its highest level against the euro in four months as rising recession fear in the euro zone led investors to seek safe haven assets like the Swiss currency.

The Swiss franc , rose 0.6 versus the euro to 1.0005 at 1210 GMT, after touching its highest level of 0.9993 against the single currency since March.

Forecasts that the euro zone will likely drop into recession amid energy security issues triggered by the war in Ukraine has encouraged investors to buy the Swiss franc.

Switzerland is less exposed to Russian fossil fuel imports and this should strengthen the risk of safe haven flows on euro zone growth concerns, said Jane Foley, head of FX strategy at Rabobank in London.

Simultaneously, speculation has emerged that in view of higher inflation, the Swiss National Bank is less likely to intervene to prevent further franc strength.

Cash held overnight by the SNB fell last week by its largest amount in more than a decade, in a sign of the end of the central bank39;s forex purchase campaign to weaken the Swiss franc.

The Swiss franc also rose 0.6 against the dollar to 0.9511, touching its highest level against the greenback since April.

The euro trimmed some earlier declines after data showing Spanish 12month inflation had risen to 10.2 in June, up from 8.7 in May and surpassing 10 for the first time since April 1985.

In earlier London trading, the euro had fallen to a sixday low, after data showed June…