The Swiss franc weakened against the dollar as markets looked towards the Swiss National Bank rate decision and policy update on Thursday. Data due on Monday expected to show a steep decline in Swiss producer and import prices were not likely to have a significant impact on the Swissie.
"The focus is very much on the SNB rate decision later this week," said Deutsche Bank economist Henrik Gullberg, adding there were good reasons to stay away from the Swiss franc in the short term. "People will be looking for indications that the SNB is committed to further weakening of the Swiss franc," said Gullberg.
The franc was lower against the dollar at 1.0876 per dollar compared to Friday's New York close of 1.0789. The Swiss currency was little changed against the euro, trading at 1.511 per euro compared to 1.5124 per euro on Friday. Producer and import price data for May. Economists surveyed by Reuters expect the index to fall between 3.4 and 4.8 percent on the year, with the median reading of 6 economists predicting a 4.6 percent drop.