The Swiss franc ticked down against the euro on Tuesday but was still close to a 10-month peak after the Swiss National Bank gave a fresh signal of more normal monetary conditions. The SNB said on Monday it would stop foreign exchange swaps with Hungary and Poland, citing improved funding conditions for east Europe's crisis-hit banking sector.

The SNB and the Hungarian central bank launched a euro-Swiss franc swap agreement in January 2009 to provide Swiss franc funding to banks which faced difficulties in getting access to franc funding when liquidity dried up. The franc fell slightly against the euro compared with the New York close, trading at 1.4746 per euro, just off a 10-month peak of 1.4721 hit last week. The franc was a little firmer against the dollar at 1.0237 per dollar.

Copyright Reuters, 2010