By Paul Dobson March 11 (Bloomberg) -- The Swiss franc traded at its strongest level in a year against the euro before the central bank decides whether to leave its key interest rate near zero. It fell versus the dollar. The franc has strengthened 1.5 percent against the 16- nation currency this year, to the highest level since the Swiss National Bank started selling the currency in March 2009 to curb its gains. The central bank will keep softening its tone on currency intervention as Switzerland’s economy gathers strength while holding its three-month Libor target rate at 0.25 percent, a Bloomberg survey of 19 analysts shows. “We do not rule out some watering down of the interventionist language, which would likely be interpreted by the market as a form of guarded approval for further euro-franc downside,” Gareth Berry, a strategist in Singapore at UBS AG, the world’s second-largest foreign-exchange trader, wrote in a client note. The franc was little changed at 1.4612 per euro after appreciating to 1.4606, the strongest since March 10, 2009. It weakened 0.2 percent to 1.0721 against the dollar. --Editors: Justin Carrigan, Daniel Tilles To contact the reporter on this story: Paul Dobson in London at pdobson2@bloomberg.net To contact the editor responsible for this story: Justin Carrigan at jcarrigan@bloomberg.net Related Articles

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