ZURICH: The Swiss franc rose against the dollar on Tuesday, after risk sentiment was sapped by disappointing Chinese data, a rout in commodity prices led by gold, and explosions in Boston.
"Higher risk aversion was reflected in the sharp spike higher in the VIX 'fear gauge,' said Mitul Kotecha of Credit Agricole.
Investors dumped riskier assets on Monday as disappointing growth data from China hit commodities and shares, while gold suffered its worst two-day loss in 30 years.
Commodities from gold to oil recouped some of those steep losses but remained volatile, gripped by worries over slowing growth in China and the United States.
Two bombs at the Boston Marathon finish line that killed three people and wounded more than 100 in the worst bomb attack on US soil since Sept. 11, 2001 added to the market malaise.
Nearer to home, Swiss March producer and import data is expected at 0715 GMT and Swiss National Bank policymaker Jean-Pierre Danthine speaks in Geneva at 1630 GMT.
The SNB capped the soaring safe-haven franc at 1.20 francs per euro in September 2011 to fend off deflation and a recession and has repeated ever since that it was ready to buy foreign currency in unlimited quantity to defend that level.
"Softer than expected economic indicators in both the US and China in combination with lower prices indicators both globally but also in Switzerland not least due lower oil prices give the SNB additional ammunition to stick to the minimum exchange rate in EURCHF for longer," said UBS economist Reto Huenerwadel.
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