ZURICH: The Swiss franc hovered against the euro and dollar on Wednesday as investors held off taking positions ahead of a decision by the US Federal Reserve on whether to adopt further monetary stimulus to prop up the economy.
The franc has eased off a near one-month high hit against the dollar at the start of the week, as relief following the Greek election result ebbed away.
The unit has been trading largely in tandem with the single currency since the Swiss National Bank capped it at 1.20 per euro last September after safe-haven flows had pushed it from one record high to another, crimping Swiss exports.
"Moving in sync - dollar-swiss continues to closely track euro-dollar. With the SNB's commitment to the lower boundary in euro-swiss confirmed similar price action is no surprise," said UBS economist Reto Huenerwadel.
At its monetary policy assessment last week, the SNB reiterated its pledge to defend the level using all necessary means and dangled the threat of capital controls to hold down the franc's value if the euro zone crisis escalates.
The ZEW investor sentiment index due at 0900 GMT will gauge whether the ongoing euro zone turmoil will impact investors' outlook for the economy.
While Swiss growth proved surprisingly strong in the first three months of the year, the SNB warned last week that momentum would slacken significantly in the months ahead.
Swiss trade data released at 0600 GMT on Thursday will also show how exporters are faring with the twin obstacles of a strong Swiss franc and weak demand in the euro zone, its biggest trading partner.
The franc was steady against the dollar at 0.9463 by 0627 GMT compared to the New York close.
The franc was little changed against the euro at 1.2007.
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