The Swiss franc was little changed against the euro and dollar in early trading on Wednesday as traders chewed over inflation data that all but snuffs out chances of quicker monetary tightening. The annual inflation rate inched up to 0.6 percent in June, according to data released on Tuesday.
Staying below analyst expectations and well within the Swiss National Bank's comfort zone for price stability. Prices for imported goods rose by 0.3 percent from May, but were 0.5 percent lower than in June 2006.
The Swiss central bank has warned repeatedly in recent months that a weak franc could drive up import prices and as a result accelerate the pace of domestic inflation, which would warrant further interest rate rises.
The softening in the Swiss franc after its firmer trend at the beginning of the week was to be expected "given that the SNB is likely to find it increasingly difficult to call for a bold move on the monetary front in light of the latest Swiss inflation data," Huenerwadel said.
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