ZURICH: The Swiss franc trod water against the euro and the dollar on Wednesday as markets weighed news that Slovakia's parliament has stalled the expansion of a bailout fund to stem the euro zone's debt crisis.
Slovakia is the only euro zone country yet to approve the plan. But a re-vote expected later this week is likely to succeed with the main opposition party set to support the measure now that the government has resigned.
The rejection was also tempered by news international lenders were likely to grant a loan to Greece next month.
"The decision of the Slovak parliament didn't have any big negative impact on the euro," said Commerzbank's You-Na Park, adding risk sentiment continued to govern currency movements.
The franc was little moved against the euro, trading at 1.2395 francs per euro by 0706 GMT compared to the New York close. Against the dollar, the franc rose 0.1 percent to trade at 0.9073.
Markets will eye Swiss producer and import price data due on Thursday for clues as to whether the SNB's move to weaken the franc by pumping huge quantities of money into the economy has started to have any inflationary impact.
Foreign reserves data released by the SNB last week showed the central bank has so far succeeded in defending the 1.20 cap it imposed on Sept. 6 without its balance sheet ballooning.
