ZURICH: The Swiss franc was steady against the euro and the dollar on Monday ahead of the US Federal Reserve monetary policy meeting later this week where the Fed is expected to confirm its commitment to low interest rates for an extended period.
The dollar, which has lost ground against a basket of currencies for three straight weeks, remained close to a five week low against both the euro and the Swiss franc, which continues to trade largely in tandem with the single currency.
Traders said trading was generally thin as investors held back from taking big positions as they look for confirmation of a continuing dovish monetary policy from the two-day Fed policy meeting, which begins on Tuesday.
The franc has shadowed euro movements closely ever since the Swiss National Bank capped the currency at 1.20 per euro almost two years ago to stave off a recession and deflation, with few catalysts to change that situation currently.
"Shrinking euro-Swiss franc interest rate differentials and limited inflation dynamics make it difficult to look for a materially higher euro-franc near term," said UBS economist Reto Huenerwadel in a note.
The franc was little changed against the dollar compared to Friday's New York close, trading at 0.9281 francs per dollar at 0612 GMT.
The franc was steady percent against the euro at 1.2327.
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