The Swiss franc fell against the dollar in early European trade on Wednesday, ahead of a Federal Reserve meeting where market watchers expect US interest rates to be raised for the ninth straight time. Data released on Tuesday showed US consumer confidence rose to a three-year high, bolstering expectations the Fed will crank up borrowing costs by a quarter percentage point to 3.25pc - making the $ a more attractive investment.
The dollar changed hands at 1.2799/03 Swiss francs, up from 1.2677 francs in late trading in Europe on Tuesday and touching eight month highs.
The euro suffering from political uncertainty in the euro zone and talk of a rate cut there, stood little changed at 1.5443/48 francs from 1.5445/50 francs on Tuesday.
Domestically, markets will be watching the release of the KOF leading indicator, which points to the expected performance of the Swiss economy in about six months time - when a much-touted Swiss economic recovery is expected to emerge.
With current borrowing costs on hold at just 0.75 percent and markets pricing out a rate hike this year, investors will be keen for a glimpse of future economic performance to guage the likely pace of future tightening.