The Swiss franc rose to six-week highs against the dollar in early European trade on Tuesday, tracking a sharp rise in the euro overnight as dealers took profits from a recent wave of dollar buying. The dollar was trading at almost six-week lows against the franc, last changing hands at 1.1691/94 francs down from 1.1818/23 francs late on Monday, while the euro traded at 1.5399/5401 francs from 1.5446/54 francs.

Investors are looking to US consumer price data as well as consumer confidence and fourth-quarter economic growth for hints of the state of the US economy.

Locally, economists said this week's KOF leading indicator, due on Friday, would be key in signalling the direction of the Swiss economy, with an average of 9 economists polled by Reuters expecting the reading to fall to 0.39 from 0.42 in January.

The median was for a 0.36 reading in February on the indicator that signals the development of economic growth in about six months time.

Copyright Reuters, 2005