ZURICH: The Swiss franc tracked the euro lower against the dollar on Friday after weaker-than expected Chinese trade data dashed hopes the world's second largest economy could help drive a global recovery, denting risk appetite. Investors sought the safety of the greenback, sending it higher against major currencies and rattling global equities on news that China's exports grew a measly 1.0 percent in July from a year earlier, well below analyst expectations for an 8.6 percent rise. The franc fell 0.1 percent against the dollar compared to the New York close, trading at 0.9767 francs per dollar at 0608 GMT, mirroring euro weakness and extending overnight losses. The franc has shadowed the single currency since the Swiss National Bank set a cap of 1.20 francs per euro last September to fend off recession and deflation, after safe-haven buying spurred by the euro zone's debt crisis sent it to near parity. As the euro has come under pressure due to the European debt crisis, the franc has followed it lower against the dollar, falling to a 19-month trough in July. Analysts say pressure on the franc euro cap is unlikely to emerge any time soon. "Whilst we expect the discussions about the sustainability of the SNB's EURCHF minimum exchange rate to flare up before the SNB's next quarterly Monetary Policy Assessment (MPA) in mid-September, the limited price action in EURCHF of late in itself has a slumbering effect on market activities," said UBS economist Reto Huenerwadel in a note. The franc traded in a tight range against the euro and was little changed at 1.2008 francs per euro.

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