The Swiss franc continued to fall against the dollar in early European trade on Tuesday, as markets cheered US efforts to cut its massive deficits. The dollar last changed hands at around 1.2241/50 francs, levels last seen in October, up from around 1.2180/85 francs late on Monday in Europe. The euro last changed hands at 1.5627/31 francs, from 1.5599/04 francs late on Monday.
The dollar strengthened on Monday after the White House proposed sweeping cuts in the budget, bolstering the view of some in the market that US deficits are under control at present.
US President George W. Bush handed a budget off to Congress that forecast a narrowing in the budget deficit to 1.7 percent of gross domestic product by fiscal year 2008 from 3.5 percent in the current fiscal year.
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