The Swiss franc slipped slightly against the euro on Wednesday in quiet trading, edging toward 2-month lows, one day ahead of a crucial rate decision where the European Central Bank is expected to hold rates steady. The Swiss franc had eased 0.7 percent versus the New York close to 1.6643 francs per euro.
Against the dollar, the franc strengthened slightly, edging toward a 2-1/2-year high, as investors positioned themselves for US data later in the session. "We awaiting for the US numbers this afternoon," said a Zurich-based trader. "It was an extremely quiet night, totally relaxed."
The franc had strengthened 0.6 percent versus the New York close to 1.1748 per dollar. Economists see ECB rates on hold at 4.0 percent until the end of next year as the ECB balances the dampening effects of tight credit conditions and the euro's climb to record highs with a pickup in inflationary pressures.
Tame Swiss inflation data continues to dampen expectations of a rate hike in Switzerland. Data on Tuesday showed consumer price inflation picked up to 0.7 percent in September, driven by higher oil prices, but the rise was lower than expected.
Swiss National Bank comments indicating that the benchmark rate of 2.75 percent was on hold for now and signs of a slowdown of the booming economy have dampened expectations that the rate difference with the euro zone will diminish anytime soon.
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