The Swiss franc strengthened versus the euro on Thursday ahead of an expected interest rate increase by the Swiss National Bank, which has been saying the weak franc could become a threat to inflation.
Markets will focus on the SNB's comments on the franc, which has come under pressure in recent months as investors exploit the differential between Switzerland's short-term benchmark rate of 2.25 percent and the 4.00 percent rate in the euro zone.
"Should the SNB message become perceived as too 'dovish', we might see further short-term weakness of the franc," said Julius Baer analyst Janwillem Acket. Acket said the SNB was "increasingly under pressure to relay a strong franc firming policy" as strong Swiss fundamentals fail to have a positive impact on the value of the franc. Against the dollar, the franc was 0.06 percent weaker at 1.2443 francs to the dollar, after stooping to a new 3-1/2 month low of 1.2469 on Wednesday.