ZURICH: The Swiss franc tracked the euro lower against the dollar on Monday as stumbling global growth and ongoing concerns about Europe's debt crisis drove weary investors to the safe haven greenback as they pared holdings of risky assets.
Investors remained sceptical of the European Union's ability to tackle the euro zone crisis ahead of a June 28-29 EU summit set to discuss a cross-border banking union, closer fiscal integration and possibly a debt redemption fund.
Some analysts said any concrete decision from the summit would be positive for the euro, at least in the short term.
"In terms of the summit outcome, persistent investor support for the euro throughout last week argues almost any statement from European leaders should be sufficient to satisfy currency markets," said Credit Agricole economists in a note.
"Such a positive reception should see EUR/USD trade back towards the top of its range, before arguably more important fiscal concerns return to quell optimism."
The franc continued to trade in tandem with the euro after Swiss National Bank vice-chairman Jean-Pierre Danthine said the level of the cap imposed last September could not be easily changed and may have to be maintained for some time.
"Similar comments suggest that the SNB is to leave the lower boundary in EURCHF untouched unless there is a major change in the macroeconomic environment taking place," said UBS economist Reto Huenerwadel in a note.
The SNB imposed a cap of 1.20 francs per euro on September 6 after safe haven flows had pushed the swissie to near parity against the euro, squeezing exports and threatening to tip the Alpine economy into recession.
The franc fell 0.6 percent against the dollar compared to Friday's New York close, trading at 0.9603 francs per dollar at 0658 GMT.
The franc was steady against the euro at 1.2007 francs per euro.
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