The Swiss franc dipped in early trading on Thursday but held off nine-year lows against the euro after strong inflation data had raised speculation about more aggressive interest rate hikes in Switzerland.
Swiss trade and investor sentiment data due later in the session might shed further light on the need for the Swiss National Bank to counter rising price pressures from strong growth with interest rate increases. The franc was 0.1 percent weaker versus the euro at 1.6602 francs per euro - off the nine-year low at 1.6673 francs hit on Tuesday.
The franc was also 0.15 percent lower versus the dollar at 1.2394 francs per dollar. A surprise jump in import and producer prices in May capped the recent franc decline on Wednesday as markets viewed the data as a sign for the SNB to tighten credit more aggressively to curb pressures from the weak franc and strong economic growth.
Investors have pushed low-yielding currencies like the franc to multi-year lows in recent weeks through so-called carry trades, which exploit interest rate differentials. The SNB had practically given "green light" for carry trades when the central bank raised its benchmark rate to 2.50 percent last week, analysts at Credit Suisse said in a note.
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