ZURICH: The Swiss franc fell against the euro on Thursday as investors awaited the European Central Bank's statement that might open the way to looser policy in the future.
The ECB meets in Frankfurt later today against a backdrop of political deadlock in Italy. It is expected to hold fire for now, but could signal it will further loosen policy in the future.
"There's room for rates of 1.2360/1.2390 and later even above 1.2400 towards 1.2415," analysts at St. Galler KB said in a note.
The franc fell 0.2 percent against the euro to trade at 1.2319 by 0825 GMT compared to the New York close.
The franc was up 0.2 percent against the dollar at 0.9469 per dollar.
The Swiss National Bank imposed a cap on the franc at 1.20 per euro in September 2011 to fend off deflation and recession.
A fall in the SNB's foreign reserves in February reflected the fact the SNB did not have to intervene to defend the cap as the franc stayed away from the 1.20 level.
