ZURICH: The Swiss franc tracked the euro lower against the safe-haven dollar on Thursday after news the Federal Reserve might slow or stop its stimulus programmes put a lid on risk sentiment. The franc, which has often traded in tandem with the euro since the Swiss National Bank capped it at 1.20 in September 2011, fell to a four-week low against the dollar after the Fed signaled it might stop bond purchases which have underpinned global appetite for risk assets. "Markets didn't appreciate news that some Fed officials already want to reduce QE3 (quantitative easing). That's not good for risk sentiment, but good for the franc. I think the recovery seen yesterday in the franc (versus the euro) was due to that," said Sarasin economist Alessandro Bee. The franc inched higher against the euro on Wednesday, but was flat at 1.2311 per euro Thursday at 0750 GMT compared to the New York close. It was down 0.1 per cent versus the dollar to trade at 0.9282. "The next focus is the Italian elections this weekend. Depending on who will win, or if somebody will win, that will drive the franc," Bee said. Trade data on Thursday showed Switzerland's exports, which had been hit by weak demand in the eurozone, may be on the path towards recovery although Bee said it was likely too early to speak of a reversal in trend. SNB Chairman Thomas Jordan said on Tuesday the central bank remained committed to its cap on the franc that it set more than a year ago to fend off deflation and recession.

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