ZURICH: The Swiss franc tracked the euro higher against the dollar on Tuesday after US lawmakers failed to agree on a $1.2 trillion deficit reduction plan and data showed Swiss exports remained robust in October in the face of a worsening euro zone crisis.
The slight rise in exports, on a monthly and yearly basis, could ease pressure on the Swiss National Bank to raise the franc-euro floor set in early September when the strong Swissie was threatening to derail Swiss exports.
"The main problem is not the strength of the Swiss franc, it is the weakening of European demand," said Pictet economist Bernard Lambert, who said the underlying trend of Swiss exports remained on a slowing path.
"(With respect to the cap) there are pressures on the SNB and firms are clearly suffering, but I don't think these figures will change anything."
The franc was stable against the euro compared to the New York close, trading at 1.2371 francs per euro at 0753 GMT.
The franc was 0.3 percent firmer against the dollar at 0.9145 francs per dollar.
The franc has traded in a tight range against the euro since the SNB capped it at 1.20 francs per euro on Sept. 6 after safe-haven buyers nearly pushed it to parity, threatening to tip the Alpine economy into recession.
The franc has tracked the euro lower against the dollar as the euro zone crisis deepened, with the greenback now seen as the only safe haven currency left following interventions by the SNB and the Bank of Japan to weaken their currencies.
"Recent data on positioning in dollar-franc reveal that the tactical investors have significantly reduced their long franc positioning." said Credit Suisse researchers.
"This reflects an adjustment in Swiss franc positioning over a period marked by dovish comments from the SNB and softer Swiss economic data."
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