ZURICH: The Swiss franc ticked up against the dollar on Monday, paring losses at the end of last week after better-than-expected US jobs data gave the greenback a brief fillip.
Data on Friday showing hiring by US companies quickened at its fastest pace in five years in April lifted the dollar against the franc after a week spent languishing at record lows.
But with the Federal Reserve seen unlikely to raise interest rates any time soon there is room for the franc to rise further, analysts said.
"(The dollar) strengthened a little bit on Friday following the stronger payrolls data but overall we think it still remains an interest rate differential story," said Marcus Hettinger, analyst at Credit Suisse.
"Interest rates in the United States are very low. They are also low in Switzerland, but the US has a deficit and Switzerland has a surplus," Hettinger said.
Interest rate futures for Switzerland show a high chance of a 25 basis point move in September, and fully price in a hike by December.
Hettinger said the franc's next test would come on Tuesday when Switzerland published consumer price inflation data for April.
The Swiss franc edged higher against the euro after a German news report, later denied, suggested Greece has raised the possibility of leaving the euro zone.
"A nearly free falling EURUSD on general Euro scares sent EURCHF tumbling accordingly last Friday. With limited news hitting the wires ever since the reaction on FX markets appears somewhat overdone," said Reto Huenerwadel, UBS economist
The franc was slightly higher against the euro compared to the New York close, trading 1.2584 per euro at 0733 GMT.
The franc rose 0.4 percent against the dollar at 0.8748 francs per dollar.
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