Swiss franc up vs dollar on firmer risk appetite

ZURICH: The Swiss franc tracked the euro higher against the dollar on Wednesday as improving risk appetite lifted global equities and investors sold off the safe-haven dollar.

Meanwhile, Swiss National Bank Chairman Thomas Jordan said a cap imposed in 2011 to prevent the franc from strengthening excessively against the euro was unlikely to be removed any time soon.

"Central banks always discuss exit strategies, but not in public. Anyway, we're quite far away from the exit in this case, so that is not really relevant," Jordan told a gathering of the Swiss Institute of International Studies in Zurich on Tuesday.

Though the franc has weakened against the euro recently, it continues to shadow moves in the euro, as it has done since September 2011 when the SNB imposed a 1.20 per euro cap on the currency to stave off a recession and possible deflation.

"None of the latest comments by SNB officials make a case for a softening of their position just now," said UBS economist Reto Huenerwadel in a note.

"Not least in light of the outlined stabilisation of their balance, however, we have no reason to look for a change in the SNB's minimum exchange rate anytime soon."

The franc rose 0.4 percent against the dollar compared to the New York close to trade at 0.9189 francs per dollar by 0723 GMT.

The franc ticked 0.1 percent higher against the euro to 1.2340 francs per euro.