The Swiss franc was largely flat against the dollar and euro in early trade on Monday, as markets digested comments by Swiss National Bank board member Philipp Hildebrand published over the weekend.
The franc's development on currency markets was a "conundrum" in view of ongoing solid Swiss fundamentals, Hildebrand said in an interview with newspaper SonntagsZeitung. Markets should not assume exchange rates would stay as stable as they had in recent years, Hildebrand said. The franc has depreciated against the euro over the past two years.
"With the weakness of the CHF on the SNB's radar screen, will this be good enough for a changed monetary policy going forward anytime soon? We doubt it," analysts at UBS said in a note. Most economists are predicting another 25 basis points rate rise in December and many expect a further hike in March next year.
The franc was down 0.05 percent on the day against the dollar at 1.2493 per dollar. Against the single European currency, the franc was unchanged at 1.5898 per euro.