The Swiss franc rose versus the dollar on Wednesday amid a broad slide of the greenback, supported by comments from the Swiss National Bank warning the franc's weakness was an inflation risk.
"The risks, which we have for inflation, are mainly connected to the development of the Swiss franc," SNB board member Thomas Jordan told Swiss newspaper Handelszeitung in an interview released on Tuesday.
The franc was some 0.4 percent stronger against the dollar at 1.1224 francs per dollar, coming close to 12-year highs against the greenback hit on November 9.
The dollar stayed weak against most other currencies as investors thought a struggling US housing sector and lingering credit problems could hurt the broader economy. SNB board member Jordan said he did not expect the dollar to recover significantly any time soon.
Against the euro, the franc was roughly unchanged at 1.6460 francs per euro, remaining well above all-time lows against the single currency hit last month. The SNB has last raised its benchmark rate by 25 basis points to 2.75 percent in September and analysts are split on whether the central bank will lift rates in the coming months.