The Swiss franc was steady against the dollar in early European trade on Tuesday as markets continued to asses the long-term economic impact of Hurricane Katrina.
But traders were optimistic that the storm's after-effects would create opportunity for investment after Dallas Fed President Richard Fisher said the negative risks would be temporary, thus supporting the view that the Fed would raise interest rates again at its next policy meeting on September 20.
It would be the 11th straight time the Fed has raised interest rates.
The dollar last traded at 1.2561/63 Swiss francs, slightly down from 1.2569/74 francs in late trading in Europe on Monday. The euro stood at 1.5447/53 francs from 1.5445/50 francs on Monday.
Domestically, Swiss interest rates are expected to remain on hold at a targetted 0.75 percent when the Swiss National Bank publishes its quarterly monetary policy decision on Thursday.
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