ZURICH: The Swiss franc fell against the euro and the dollar on Tuesday as global markets stabilised following the recent patch of volatility, prompting less demand for safe-haven currencies.
The franc fell 0.6 percent against the dollar to trade at 0.9693 by 0700 GMT compared to the New York close.
The franc fell 0.4 percent against the euro to 1.2502.
St. Galler Kantonalbank analysts said they expected the franc to trade between 1.24 and 1.26 per euro for the time being.
"We do not expect the cross to break higher but expect a slow consolidation or reversal," they wrote in a note.
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 Swiss National Bank to lift the cap it imposed on the currency in 2011 at 1.20 per euro to 1.25 to protect jobs in sectors such as machinery and tourism.
Swiss exports rose by a real 6.9 percent in April, helped by two extra working days in the month, data showed on Tuesday, but fell 3.7 percent when adjusted for the working days.
First quarter Swiss gross domestic product data is due on Thursday. Analysts polled by Reuters expect a slight deceleration to about 0.9 percent annualised growth.
"Encouraging economic news will not imply any change in the franc cap, however especially given the benign inflation outlook," said Mitul Kotecha of Credit Agricole.
"Higher risk aversion will keep the franc supported in the near term but any move in EUR/CHF back to 1.24 should be bought into."
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