The Swiss franc crept higher against the dollar in early trade on Tuesday but remained close to multi-year lows against the euro as investors continued to sell it to fund investments in higher-yielding currencies.
The franc was almost flat against the euro at 1.6148 per euro, still within sight of multi-year lows of 1.6174. The Swissie was up 0.1 percent against the dollar at 1.2471 per dollar.
"The solid performance of stocks internationally and the worries about an upcoming change in monetary policy in Japan kept the franc the funding of choice for international investors for another day on Monday pushing the euro/franc above the 1.6150 level," analysts at UBS said in a note. Together with the yen, investors have used the low-yielding franc to fund investments in higher-yielding currencies in so called carry trades. Many analysts expect the Bank of Japan to raise rates later this week by 25 basis points to 0.50 percent.