The Swiss franc opened almost unchanged on Friday, locked in narrow range-trading, ahead of the publication of May producer and import price data later in the session. The franc traded at 1.2435 per dollar, fractionaly weaker than the previous close of 1.2424.
The dollar has gained some support from rumours on Thursday that United States Federal Reserve officials, possibly including Chairman Bob Bernanke, had met bond market participants the previous day.
The market talk fanned speculation the Fed might raise rates by a half a percentage point when it meets next week, although most traders are still standing by forecasts for a rise to 5.25 percent from the current 5 percent. Meanwhile the Swiss franc was barely changed against the euro, changing hands at 1.5631 per euro against a previous close of 1.5625. J.P. Morgan said in a note that the euro/franc rate was "re-testing the 1.5625/35 previous highs after failing to breakdown through 1.5570. A larger correction process is going to play out here for now and we are not sure if this is going to develop into a range or whether we push back towards 1.5700."
The trade data underline the robust health of the Swiss economy after Swiss industrial orders soared in the first quarter of the year, according to data published on Monday.