ZURICH, April 30 (Reuters) - The Swiss franc slipped against
the dollar on Tuesday, moving in tandem with the euro which
pared gains recorded on Monday after Italy ended two months of
political uncertainty by forming a government.
'Market relief following the formation of a new government
in Italy was evident in the positive reception to Italy's bond
auction yesterday,' said Mitul Kotecha of Credit Agricole.
'Even so, a likely policy rate cut by the ECB and potential
hints at future non conventional easing will be sufficient to
prevent the euro from capitalizing much on the generally softer
U.S. dollar tone this week.'
The safe-haven franc has broadly tracked the single currency
since the Swiss National Bank introduced a cap of 1.20 per euro
in September 2011 after a strong run up in the franc threatened
to tip the country into recession.
The franc fell 0.1 percent against the dollar to trade at
0.9374 by 0710 GMT compared to the New York close.
The franc was flat against the euro at 1.2264.
The SNB reported a healthy profit for the first
quarter of 2013 on Tuesday, as it recorded gains on its equity
holdings and an appreciating dollar helped boost the value of
its huge foreign exchange reserves.
At the end of March, the SNB said euro-denominated assets
made up 48 percent of its portfolio, down from 49 percent at the
end of 2012, while 27 percent was held in U.S. dollars, down
from 28 percent, and 9 percent in yen, up from 8 percent.
For polls, indicators and stories on the Swiss economy,
((Reporting by Emma Thomasson +41 058.306.7336; fax
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