ZURICH: The Swiss franc ticked lower against the euro on Tuesday, giving up some of the previous session's gains, as concern about a potential money market squeeze in China eased slightly. The franc had risen to a seven-week high against the single currency on Monday as investors, rattled by worries about the health of China's finance system, sought a haven in the Swiss currency. "Yesterday was risk-off mode especially regarding China's money markets. It seems to be abating a little bit today and some off theis risk-off mode is now off the table," said Commerzbank forex strategist Ulrich Leuchtmann. Chinese authorities are seeking to rein in excessive credit growth, prompting concerns about a potential money market squeeze in the world's second largest economy and sparking a sharp sell off in the country's stock market. Concern over China's growth and liquidity has unsettled markets already jittery about when the U.S. Federal Reserve will start to taper its bond-buying programme. "The prospect of lower growth in China is doing little to boost sentiment in the markets, at a time when investors are facing up to life without QE3," said Alpari market analyst Craig Erlam. The dollar halted its rally on Tuesday after two top Fed officials sought to donwplay market fears of an imminent end to stimulus. Investors are awaiting U.S. data due on durable goods and new home sales later in the day for clues to the health of the global economic recovery. The franc fell 0.1 percent against the euro to trade at 1.2256 by 0654 GMT compared to the New York close.

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