0949 GMT - The Swiss franc could be increasingly favored as a funding currency over the Japanese yen in carry trades where investors borrow in low-yielding currencies to invest in higher-yielding currencies, ING's Chris Turner says in a note. Low volatility is supporting demand for carry trades, weighing on the yen and franc, he says. "While the yen may be preferred as a funding currency because of its deeper liquidity pools, we think investors will increasingly turn to franc funding--not only for cheaper borrowing costs but also to avoid the risk of sudden yen-buying intervention from Tokyo and Washington." The franc trades flat at 196.65 yen after reaching a two-and-a-half-week high of 196.90 earlier, LSEG data show.