The Swiss franc gained ground against the dollar on Tuesday as the US currency came under pressure from worries about US subprime mortgage problems hurting the credit market and economy.
The Swiss currency is rising in line with other major currencies against the dollar and getting little direction of its own from Swiss domestic economic data, with markets already looking to Friday's leading KOF growth indicator for July.
Traders are watching the KOF, which is seen rising for a sixth month running in July, for more evidence on the strength of the Swiss economy, as markets are pricing in a high probability of more aggressive interest rate tightening.
The franc was 0.16 percent higher versus the US currency at 1.2039 per dollar.
It was almost unchanged against the euro at 1.6656 per euro, still close to a nine-year low at 1.6673 hit last month. The franc has been under pressure against the higher-yielding euro as investors use it as a funding currency in carry trades.