The Swiss franc was trading at a three-week low against the euro and slipped against the dollar in early European trade on Monday as the US currency was buoyed by last week's solid non-farm payrolls data.
The dollar traded at 1.2707/11 francs, just above the 1.2674/78 European trading late on Friday, while the euro last changed hands at 1.5312/23 francs, compared to around 1.5322/27.
Data on Friday showed US non-farm payroll jobs increased by 144,000 in August, close to economists' average forecast of 150,000 and not as bad as some had feared. The data bolstered expectations of a US interest rate increase later this month.
Locally, the Swiss National Bank holds its next policy-setting meeting on September 16. Economists expect it to continue to gradually raise interest rates over the remainder of the year.
"By now the majority of market participants are again looking for two additional rate hikes before the end of the year," UBS economist Reto Huenerwadel said in a note.
Dealers are watching Swiss jobless data, due on Tuesday, and second-quarter gross domestic product data, due on Friday, for indications as to whether the Swiss recovery is strong enough to convince the SNB of the need for yet-higher interest rates.
In an interview with Le Temps newspaper on Saturday, SNB Chairman Jean-Pierre Roth said the Swiss economy would grow more in 2005 than the 2.0 percent seen for this year. He gave no hint as to when rates would rise.
"Given the scenario of an increasingly stable growth, monetary policy will normalise," he said.