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The Swiss franc hovered close a nine-year low against the euro but was up against the dollar after an overnight slide in benchmark US Treasury yields weakened the US currency.
The franc remained under pressure from carry trades after warnings from the Swiss National Bank that the currency's weakness might push up inflation and lead to higher interest rates fell on deaf ears.
The franc was at 1.6645 francs to the euro compared to a low of 1.6673 hit in the session. Against the dollar, the franc rose to 1.2394 francs to the dollar, compared to 1.242 late on Monday. The SNB raised rates by 25 basis points last week and said more hikes were likely if the economy remained strong and the franc weakened.

Copyright Reuters, 2007

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