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The Swiss franc eased against the euro on Tuesday, ending a week-long rally, as the single currency rose against most major currencies in thin trading ahead of the Christmas holidays. The franc fell 0.3 percent against the euro compared to the New York close, trading at 1.5295 per euro.
The franc has gained around three percent since December 15 on views that the ECB will cut interest rates further and lower the rate differential with Switzerland. "Since the ECB has become the laggard among main central banks, there may be more interest rate cuts in the offing than in other economies, which should put downward pressure on the common currency going forward," analysts at Swiss Life Asset Management said.

Copyright Reuters, 2008

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