ZURICH: The Swiss franc tracked the euro to its lowest level against the dollar since October 1 in early Wednesday trading on concerns flagging global growth could hit company profits as the corporate earnings season kicked off in the United States.
Swiss National Bank Chairman Thomas Jordan said the 1.20 francs per euro floor that the SNB set over a year ago to ward off a recession was the right policy for the foreseeable future.
Jordan told an gathering of global monetary policymakers in Tokyo that balance sheet expansion as the SNB bought euros to defend the cap was not without risks, but that the SNB must bear these risks to meet its mandate.
The franc has largely traded in tandem with the single currency against the dollar since the Swiss National Bank set the cap.
Traders were on the alert as the euro slipped close to its 200-day moving average. Some analysts said a breach of that level could trigger more selling by technical traders.
"If the 200-day average is broken, there will be selling from model players. I feel the market is likely to test that level," said Takahiro Suzuki, vice president of forex at Nomura Securities.
The franc fell 0.2 percent against the dollar compared to the New York close, trading at 0.9419 francs per dollar by 0632 GMT.
UBS economist Reto Huenerwadel said reports that some international clearing houses could look to introduce charges on clients' Swiss franc deposits had the euro-franc rate to spike briefly but was unlikely to have a lasting effect.
"Whilst any such decision hardly comes as a major surprise, similar decisions on their own are unlikely to be enough to push the cross materially higher," Huenerwadel said.
The franc firmed 0.1 percent against the euro, trading at 1.2103 francs per euro.
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