The Swiss franc eased slightly on Tuesday but stayed close to highs against euro and dollar as worries about the global economy supported the safe haven franc. The Swiss National Bank has not expressed concerns about the franc's rise so far, UBS analyst Reto Huenerwadel said, unlike the European Central Bank, which called excessive moves undesirable.
"Near term there seems little in the way of a further franc strengthening," he said. "Bold moves from the SNB after all can largely be excluded prior to the forthcoming quarterly announcement of Swiss monetary policy on Thursday."
The franc was 0.2 percent softer against the euro compared to the New York close, trading at 1.5679 per euro within sight of the 1.5614 hit on Monday, the highest level since July 2006. The franc was 0.1 percent weaker against the dollar at 1.0205 per dollar, off the record of 1.0136 hit on Friday.
ECB president Jean-Claude Trichet said on Monday the central bank was currently concerned about excessive moves in the currency, sending the euro, which had soared to new record highs versus the dollar, lower.
The SNB in turn has recently abstained from commenting on the currency, whose weakness was a major concern for the central bankers last year. Analysts are now keen to see whether warnings against the impact on growth from the surge of the franc will make it into the SNB's statement following its interest rate decision, where the central bank is seen holding rates unchanged.
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