ZURICH: The Swiss franc looked set to extend the previous session's losses against the greenback, with investors buying the US unit on hopes the US economy and labour market may be improving.
The US dollar hit a two-month high against a basket of major currencies on Monday after a report showed US employers stepped up hiring in October to 171,000, beating even the most optimistic forecasts.
"This has provided some support to the USD," said Mitul Kotecha, head of forex strategy at Credit Agricole corporate and investment bank.
While the US jobless rate is still 3 percentage points above its pre-recession levels, the recent uptick in US jobs and consumption data contrasted with deteriorating economic picture in Japan and Europe.
"The dollar is likely to remain firm benefitting from weaker economic data elsewhere and a lack of progress with regard to Greece and Spain," Kotecha said.
Due to the cap of 1.20 per euro the central bank set a year ago to lessen the risk of a recession, the franc often trades in tandem with the euro against the dollar.
For months the franc clung to the 1.20 intervention mark, but an easing of market tensions in the euro zone in September has allowed the franc to weaken against the common currency.
The franc was flat against the dollar compared to Friday's New York close, trading at 0.9401 by 0710 GMT, off an intra-day trough that was its weakest since Oct. 10.
The franc was flat against the euro at 1.2070.
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