The Swiss franc slipped against the dollar on Tuesday, but hovered close to a recent 5-month high as investors return from a long-weekend in New York and London. "The big question is if the dollar selling from last week is going to continue. We expect it will after it broke the 1.09 resistance level," said Credit Suisse analyst Martin McMahon.
The franc was trading 0.3 percent lower against the dollar compared to the New York close at 1.0856 per dollar, as investors await US Treasury auctions to test the strength of investor appetite for dollar assets.
Last Friday, the dollar slid to a 5-month low against the franc of 1.0814 francs per dollar and fell against a range of other currencies as fears the US government debt may lose its AAA rating, prompted many to sell the world's reserve currency. Against the euro, the Swissie was trading near flat at 1.5169 per euro on Tuesday.
Investors are likely to focus on a series of key Swiss economic indicators for direction. "Starting with Tuesday's Q1 2009 employment report, all the Swiss indicators scheduled for this week have the potential to stir financial markets after all," said UBS economist Reto Huenerwadel in a note.
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