The Swiss franc tracked the euro lower against the dollar on Wednesday as both currencies gave up some of Tuesday's gains which came after Italian Prime Minister Silvio Berlusconi pledged to resign following the approval of a new budget law. Some analysts saw the scandal-hit media magnate's departure as a precondition for saving Italy's public finances, and the announcement gave the single currency an immediate boost.
But other analysts said it was unclear whether a new government would be able to promote growth and slash spending to reduce Italy's debt. The franc fell 0.4 percent against the dollar compared to the New York close, trading at 0.8988 francs to the dollar at 0824 GMT.
The franc was flat against the euro at 1.2389 francs to the euro. The franc has traded in the 1.20-1.25 francs per euro range since the Swiss National Bank capped the currency at 1.20 after the festering euro zone crisis pushed it close to parity with the single currency, crimping Swiss exports.
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