The Swiss franc firmed slightly against the dollar in early trading on Monday, recovering some ground ahead of economic data and a busy schedule of speeches from Swiss central bankers. The franc was changing hands for 1.1524 francs per dollar, up from 1.1532 francs late on Friday.
Against the euro, the franc was trading roughly flat at 1.6629 francs per euro. The Swiss National Bank (SNB) left interest rates unchanged last week for the first time in two years and said commercial banks had to sort out the liquidity crisis for themselves.
That followed the SNB's decision to join other international central banks in announcing co-ordinated action to free up interbank lending on many money markets. November trade data and producer and import prices for November are due on Thursday. The latter will be watched for indications that input costs are rising, an early indication of rising consumer prices.
UBS analyst Reto Huenerwadel said that current inflationary concerns were exaggerated: "At least for Switzerland we argue that slowing growth dynamics from the economy and a favourable base effect where oil prices are concerned invesasingly weigh on headline inflation, not making a case for markedly higher Swiss franc rates," he wrote in a daily markets bulletin.
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