ZURICH: The Swiss franc strengthened against the dollar on Monday as traders continued to reduce their exposure to the greenback after data last week showed the US economy grew at a slower-than-expected pace in the first quarter.
The greenback retreated after data on Friday showed US gross domestic product expanded at a 2.5 percent annual rate in the first quarter, falling short of market expectations for 3.0 percent growth.
The Swiss currency has broadly tracked the euro since the SNB introduced a cap of 1.20 in September 2011 after a strong run up in the franc threatened to tip the country into recession.
In Switzerland, highlights this week include first-quarter Swiss National Bank data on Monday detailing the size and structure of the central bank's balance sheet, bloated by intervening in currency markets to stem the rise of the franc.
"We are not looking for major changes on currency and asset allocation. The most likely changes would be an increase in the share of equity holdings on valuation changes," UBS strategist Reto Huenerwadel said.
Swiss PMI data is due on Thursday, while SNB board member Fritz Zurbruegg speaks on Wednesday.
The franc rose 0.1 percent against the dollar compared to Friday's New York close to trade at 0.9416 by 0536 GMT.
The franc fell 0.1 percent against the euro to 1.2286.
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