ZURICH: The Swiss franc rose against the euro on Thursday but fell against the dollar as US Federal Reserve hawkishness and weak data from China took their toll on risk appetite, buoying safe haven units and sending the single currency lower.
The dollar rose broadly after Fed Chairman Ben Bernanke said the US central bank would begin to trim stimulus measures as the country's economic outlook brightens.
"Going forward firmer US data, taken together with higher US yields, will continue to drive the US dollar higher against major currencies," Credit Agricole head of foreign exchange strategy Mitul Kotecha said in a note.
Closer to home, the Swiss National Bank is expected to reaffirm its commitment to defend its lid on the safe-haven currency at its June monetary policy assessment at 0730 GMT.
Earlier on Thursday, data showed Swiss exports fell by a real 5.2 percent in May with a sharp decline in sales of watches, pharmaceuticals and chemicals. Exports have been supported by a 1.20 cap against the euro that the central bank imposed in 2011, but have suffered from weak demand in Europe, Switzerland's biggest trading partner.
The franc fell 0.3 percent against the dollar compared to the New York close to trade at 0.9306 francs per dollar by 0703 GMT.
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