ZURICH: The Swiss franc was steady against the dollar on Wednesday, consolidating the previous session's run up alongside the euro, which was bolstered by hopes for decisive action from the European Central Bank to tackle the debt crisis.
The franc has shadowed the movements of the single currency closely since last September, when the Swiss National Bank imposed a 1.20 per euro cap to stave off recession and deflation after safe haven investors pushed the currency to near parity.
Traders said news that European Central Bank President Mario Draghi was too busy to attend Friday's Jackson Hole meeting of central bankers had renewed hopes he could announce a long-awaited plan to tackle the region's debt crisis at the ECB's Sept. 6 policy meeting.
Credit Agricole head of global forex strategy Mitul Kotecha said the euro was supported by a fall in peripheral euro zone bond yields on expectations of ECB action, and could track higher in the short term.
"Nonetheless, given the risk that so much could go wrong in the weeks ahead we are loathe to get on the bullish euro bandwagon," Kotecha said in a note.
"While EUR/USD and EUR on the crosses will likely remain firm ahead of Jackson Hole we expect the euro to struggle to hold onto gains into next week."
The franc was little changed against the dollar compared to the New York close, trading at 0.9558 francs per dollar at 0551 GMT.
The franc was steady against the euro at 1.2007 francs per euro.
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