ZURICH: The Swiss franc ticked up against the dollar on Wednesday as it tracked the euro off a one-week low against the greenback hit on Tuesday.
The franc has largely traded in tandem with the single currency since last year when the Swiss National Bank imposed a cap of 1.20 per euro to stop the safe-haven currency soaring and ward off deflation and a recession.
The franc rose 0.1 percent against the dollar to trade at 0.9313 by 0637 GMT compared to the New York close. The franc was flat against the euro at 1.2104.
Against the greenback, the euro steadied at $1.2988 from Tuesday's low of $1.2952, as investors continue to wait for Spain to ask for aid to help manage its huge public debts with external funds.
"After what looked like a definite trend higher, EUR/USD is beginning to show more sensitivity to headline news as demonstrated by its move below 1.30 yesterday," said Sireen Harajli of Credit Agricole.
"News that Spain may miss its public deficit target this year came as no surprise, but cast a shadow of uncertainty in the market."
The euro - and with it the franc - could be pressured if initial readings of euro zone purchasing managers' index and a German Ifo business sentiment survey due later on Wednesday signal further deterioration.
The only major Swiss economic indicator out this week is the Kof barometer - due at 0700 GMT on Friday.
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