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The Swiss franc edged slightly higher against the dollar in early trade on Thursday, helped by a key Swiss economic indicator signalling the recovery was on track, even if it suggested that the upturn would be modest.
The dollar drifted lower to 1.3061/66 francs from 1.3090/95 late on Wednesday in Europe. The euro was also lower at 1.5458/62 francs compared with 1.5491/96.
Switzerland's KOF leading indicator of business expectations rose in April from an upwardly revised March figure, suggesting that growth would continue to accelerate towards the middle of the year but will level off in the third quarter.
Some also said the Swiss National Bank was reigning in increasingly optimistic expectations for an interest rate rise soon, pointing to under-used capacity and low inflation.

Copyright Reuters, 2004

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