The Swiss franc weakened against the dollar in early trading on Thursday ahead of a slew of economic data from Switzerland, while staying close to multi-week lows against the euro. Data are expected to show the Swiss economy has been expanding at healthy 0.6 percent pace in the first quarter, from the last three months of 2005.
But inflation will remain benign, analysts think, inching up to only 1.3 percent, giving the Swiss National Bank ample leeway to raise interest rates at a modest pace only.
The franc traded at 1.561 to the euro, flat on the day, and remaining close to a three-week low at 1.5632 hit last week. The Swissie stood at 1.222 to the dollar, down 0.3 percent.
On Wednesday, a better-than-expected reading for Switzerland's KOF leading indicator in May signalled that the economy would pick up speed through the rest of 2006, hitting its highest level in around two years.
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