Friday, 04 January 2013 13:38
ZURICH: The Swiss franc was weaker against the dollar on Friday, slipping alongside the euro to a fresh 3-week low in early trading ahead of US jobs data due out later in the session.
The franc has tracked the euro lower against the dollar in the opening sessions of the year as euphoria that US lawmakers had struck a deal to stave off the so-called fiscal cliff gave way to concerns that budget wrangling is set to continue in Washington.
That kept a lid on risk appetite, pushing some investors to trim stock positions and swap euros and francs for the dollar, which has become the safe haven currency of choice ever since central banks in Switzerland and Japan intervened in the markets to weaken their currencies.
The franc has in fact traded in tandem with the single currency since the Swiss National Bank capped it at 1.20 per euro in September 2011 to fend off a recession, making trading in the swissie more susceptible to euro zone sentiment.
"Today's US labour market data is likely to set the tone for near-term trading, in the absence of immediate further political developments," said analysts at Credit Agricole.
A better than expected number will likely put the brakes on the dollar's recent rise and trigger a limited pullback against major currencies, said one Zurich-based trader.
The franc fell 0.2 percent against the dollar compared to the New York close, trading at 0.9285 per dollar by 0739 GMT. compared to the New York close.
The franc held firm against the euro at 1.2087 per euro.
Copyright Reuters, 2013