The Swiss franc steadied on Monday after hitting a nine-year low against the euro as markets awaited orders data later in the session and ignored moves last week by the Swiss National Bank to support the currency. The SNB raised interest rates by 25 basis points last week and said more hikes were likely if the economy remained strong and the franc weakened.
So-called carry trades have been pressuring the franc for months as investors take advantage of the differential between Switzerland's short-term benchmark rate of 2.50 percent and the 4.00 percent interest rate in the euro zone.
The SNB also warned against the risks of the weak franc, saying it could push inflation higher while fuelling an economy that is running already close to capacity limits.
UBS analyst Reto Huenerwadel sees a decline in quarterly momentum, mainly due to seasonal factors, but with yearly growth continuing at a solid pace around 5.0 percent. The franc was at 1.6619 francs to the euro compared to 1.6620 late on Friday, having earlier hit 1.6630, the lowest level since August 1998. Against the dollar, the franc steadied near 1.2409 francs to the dollar, compared to 1.2411 late on Friday, after hitting a 3-1/2 month low last week.