ZURICH: The Swiss franc edged lower against the dollar on Wednesday after data showed US manufacturing grew at its fastest in more than two years, bolstering views the US Federal Reserve could soon start trimming its stimulus measures.
The data provided more evidence to support expectations the Fed will begin tapering its stimulus at its policy meeting on Sept. 17-18, unless US payroll numbers due on Friday fall short of forecasts.
A cut in the Fed's bond buying programme could allow US Treasury yields to drift higher, drawing in more international investors and lifting the dollar.
However, caution ahead of this week's central bank meetings in Europe as well as the possibility of a US military strike on Syria are likely to keep major currency pairs in recent ranges, market participants said.
Significantly better-than-expected economic growth data from Switzerland on Tuesday kept a floor under the franc but failed to push it higher against the dollar or the euro.
"The latest price action in Swiss franc monetary variables are a clear indication that the bulk of market participants share the view of a largely unchanged monetary policy framework in Switzerland, irrespective of the latest better-than-expected Swiss economic data," said UBS economist Reto Huenerwadel.
The Swiss National Bank convenes on Sept. 19.
The franc fell 0.1 percent against the dollar compared to the New York close to trade at 0.9374 per dollar by 0603 GMT.
The franc was 0.1 percent lower against the euro at 1.2346 per euro.
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