* Loss as franc rose against yen, dollar, euro in Q1
* SNB set cap of 1.20 francs per euro on Sept. 6
* Interest income rose as did gold valuation (Adds details, background)
ZURICH, April 30 (Reuters) - The Swiss National Bank posted a first-quarter loss due in part to a stronger Swiss franc, underscoring the challenge it faces in curbing the gains of a currency which is attracting investors seeking a safe haven amid the euro zone debt crisis.
The central bank, which capped the red-hot franc on Sept. 6 at 1.20 per euro as it threatened to tip the economy into recession, said on Monday it made a consolidated loss of 1.7 billion Swiss francs ($1.9 billion) in the first quarter.
The franc's rise eroded the value of the SNB's foreign exchange holdings, which are worth over 200 billion Swiss francs.
The Swiss currency climbed 9.6 percent versus the yen and 3.8 percent against the U.S. dollar during the first quarter, the SNB said. It also edged up 1.1 percent against the euro, but is holding below the central bank's cap.
At the end of the first quarter, 51 percent of the SNB's foreign exchange reserves were in euros, 28 percent in dollars and 9 percent in yen. A large portion is invested in top-rated fixed income products.
The central bank made a net loss on foreign currency positions of 2.6 billion Swiss francs. Gross exchange rate losses totalled 6.4 billion francs, but these were partly offset by other price gains and interest income from investments.
Despite the upper limit, the franc is still about 30 percent stronger against the euro than when Lehman Brothers collapsed in 2008.
Gold holdings saw a valuation gain of 800 million francs.
Adding to the upwards pressure on the franc, Switzerland has so far escaped a recession and the SNB revised up its growth forecast for the year to around 1 percent.
At the central bank's annual general meeting last week, Chairman Thomas Jordan reaffirmed his commitment to the 1.20 per euro cap, saying the boundary was an extreme measure and could not simply be moved around.
Switzerland's 26 cantons (states) are the SNB's biggest shareholders.
Jordan took the central bank's helm in January, when then-Chairman Philipp Hildebrand stepped down over a currency trading affair. Jordan was confirmed in his role earlier this month.
Under Hildebrand, the SNB ran up a huge annual loss due to its efforts to keep a lid on the strong franc and as a result suffered sharp criticism from Christoph Blocher, mastermind of the powerful right-wing Swiss People's Party (SVP).
Blocher repeatedly called for Hildebrand's head due to the losses, but is now facing the prospect of a legal investigation into his role in bringing about Hildebrand's resignation.
The SNB incurred its biggest loss ever in 2010 due to its efforts to curb the franc's strong rise. The central bank returned to a profit last year.
($1 = 0.9059 Swiss francs) (Reporting by Catherine Bosley; editing by Patrick Graham and Mark Potter)
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