The Swiss franc opened little changed against the euro and the dollar on Tuesday with the foreign exchange market waiting to see whether the European Central Bank (ECB) will hike interest rates.
The franc traded at 1.5591 against the euro, practically unchanged from the previous close of 1.5586. The Swiss franc was quoted at 1.2082 to the dollar, a little weaker than the previous close of 1.2074. With dealers expecting a 25 basis point rise from the ECB to 2.75 percent on Thursday, the market will focus on ECB President Jean-Claude Trichet's post-meeting remarks. Any comments from Trichet suggesting that rates will climb could boost the euro against the dollar.
The dollar was given a boost on Monday, recovering from a one-year low against the euro, when Federal Reserve head Ben Bernanke pledged to stay vigilant against inflation, leaving the door open for interest rates to rise again later in June.
The Swiss franc's recent strengthening against the euro has been driven by accelerating expansion of the real economy and expectations.