ZURICH: The Swiss franc was steady against the dollar on Wednesday, within striking distance of a seven-week high as uncertainty about the US Federal Reserve's plans to reduce its bond buying programme weighed on the dollar.
The franc was steady against the euro in thin trading, continuing to track the single currency as it has broadly done since the Swiss National Bank imposed a 1.20 francs per euro cap in September 2011 to stave off a recession and deflation.
As a safe-haven currency, the franc rose to record levels through the global recession before pulling back after the SNB imposed the cap. It remains at historically high levels despite recent apparent improvements in global economic conditions.
"We've had a few positive broad-based surprises on the economic front from the US, Switzerland and Europe, but it hasn't led to a weaker Swiss franc. Markets are likely waiting for more clarity regarding U.S monetary policy," said J. Safra Sarasin analyst Ursina Kubli.
"The global economy appears to be improving, and if euroland pulls further out of recession this should become an environment where demand for the Swiss franc starts to weaken."
The franc was steady against the dollar compared to the New York close, trading at 0.9259 francs per dollar at 0646 GMT .
The franc was unchanged against the euro at 1.2316 per euro.
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