ZURICH: The Swiss franc ticked up against the euro and the dollar on Monday as another sharp fall in Japanese equities weighed on appetite for risk.
Japan's Nikkei Index slid more than 3 percent, following on from turbulent trading in the previous week when concerns over weak Chinese manufacturing data and worries the US Federal reserve might start reducing its bond-buying programme hit stocks and currency markets.
"Looking at what's developing in Japan, we're maybe seeing some comeback off the risk-off mode," said Sarasin analyst Jan Poser.
The safe-haven franc was trading up 0.1 percent against the euro at 1.2426 compared to the New York close.
Against the dollar, the franc was also up 0.1 percent at 0.9604, with a holiday in the United States and Britain expected to keep trading thin.
The franc fell to a two-month low against the euro last Wednesday after Swiss National Bank chief Thomas Jordan declined to rule out negative interest rates and said policymakers could adjust the currency cap if necessary.
The recent weakening of the franc has led to fresh calls for the SNB to move its cap on the currency to 1.25 from 1.20 to protect jobs in industries particularly exposed to movements in the currency, such as the machinery and tourism sectors.
Trade data due on Tuesday is expected to show Switzerland's trade surplus narrowed to 1.757 billion francs in April from 1.9 billion francs in March, according to economists polled by
Reuters.
Investors will also be eyeing GDP data due on Thursday, which is expected to show the Swiss economy grew by 0.2 percent in the first quarter.
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