The Swiss franc edged down on Tuesday against the euro and the dollar as markets positioned for key interest rate meetings later in the week. "The situation on stock markets has calmed a bit so the franc tends to fall," said Clariden Leu analyst Sandro Baechli.
"But the franc is more or less stuck at the current levels. Only if ECB president Jean-Claude Trichet softens the tone, the franc should rise again," he said. The franc was 0.1 percent lower against the euro compared to the New York close, trading at 1.6157 per euro.
The franc was 0.3 percent weaker against the dollar at 1.0910 per dollar. Over the last several weeks the franc has reflected moves in share prices as rising risk aversion pressured stocks while boosting the traditional safe haven currency.
The difference between the euro zone's benchmark rate of 4 percent and the Swiss National Bank's target of 2.75 percent has long pressured the franc as investors borrow it to invest in higher-yielding assets in the euro zone. The European Central Bank is widely expected to hold rates unchanged at its meeting on Thursday.