ZURICH: The Swiss franc was lower against the dollar and the euro on Monday, with traders holding back from building large positions as they await clues on the future of US stimulus from a two-day Federal Reserve meeting beginning on Tuesday. Some economists expect the Fed to nudge down its central forecasts for 2013 growth and inflation forecasts, while manufacturing surveys from New York and Philadelphia and a national poll of homebuilders this week will give further clues to the future of the Fed's stimulus measures. Equities markets have weakened along with bonds since May 22 when Fed Chairman Ben Bernanke said the US central bank might start paring back on extraordinary stimulus measures by slowing its bond buying programme in the coming months, hitting the dollar but lifting other safe-haven units like the Swiss franc. "Expectations are for a tapering off of the bond buying programme, and if the Fed confirms that and keeps its language unchanged we expect the euro-franc to move lower again," said Sarasin currency strategist Ursina Kubli. "If the Fed pulls back from that position, it will favour the euro-Swiss franc," she added, meaning a rise in risk appetite would prompt investors to bid up the single currency. The franc fell 0.4 per cent against the dollar compared to Friday's New York close, trading at 0.9242 per dollar by 0645 GMT. The franc fell 0.2 per cent against the euro to 1.2317 per euro.

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