The Swiss franc eased against the dollar on Wednesday ahead of an expected U.S. interest rate rise later in the session but was little changed against the euro ahead of a key Swiss data release. The dollar changed hands at 1.2650/55 compared with levels around 1.2610 late on Tuesday in Europe. The euro was at 1.5288/93 compared with levels around 1.5285. The Fed's policy-setting Federal Open Market Committee is widely expected to raise short-term borrowing costs a modest quarter-percentage point from the current 46-year low of one percent when its two-day policy meeting ends on Wednesday.
Swiss traders will also be looking to the KOF leading indicator due at 0930 GMT on Wednesday, which is expected to confirm that the Swiss economic recovery from a double-dip recession is on track. Ten economists polled by saw a median reading of 0.94 for the KOF barometer, a slight decline from a more than three-year high seen in May at 0.95. The KOF points to the expected performance of the Swiss economy in six to nine months' time. Swiss inflation data and the purchasing managers index are due on Thursday. The Swiss National Bank increased its interest rate target band earlier this month signalling its conviction that the economy is gathering pace.///