ZURICH, April 10 (Reuters) - The Swiss franc was flat
against the dollar and the euro, after economic data showed
there was little impetus for Switzerland's central bank to back
away from a policy of capping the franc against the euro.
Weaker-than-expected Swiss inflation data on Tuesday
underscored the Swiss National Bank's (SNB) view that it needs
to maintain the 1.20 lid it imposed on the rising franc in
September 2011, an effort to stave off deflation and a
Also on Tuesday, unemployment in Switzerland edged slightly
lower in March - to 3.2 percent, compared with 3.4 percent in
'Further evidence of a softening Swiss labour market and
lower headline inflation prints bolster the SNB's monetary
position on the margin,' UBS economist Reto Huenerwadel said.
'For now the SNB would seem to have little motivation to
step away from the Swiss franc cap and hence the SNB's 3-month
Swiss franc Libor target band between 0.0 and 0.25 percent,' he
At its most recent policy meeting last month, the SNB
reinforced its vigilance to keep the franc down, warning that
the euro zone crisis could resurface and drive investors back
into the Swiss currency as a safe harbour.
Further afield, currency investors will be watching the
release of the minutes of the U.S. Federal Reserve's last
monetary policy meeting later on Wednesday for any signal on
whether the central bank could slow or halt its asset-buying
stimulus, which is seen as negative for the dollar as it is
tantamount to printing money.
The franc was virtually unchanged against the dollar on
Wednesday to trade at 0.9324 by 0601 GMT compared with the New
The franc was flat at 1.2197 against the euro.
For polls, indicators and stories on the Swiss economy,
(Reporting by Katharina Bart; Editing by Pravin Char)
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