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The Swiss franc gained against the dollar in early European trade on Thursday as the greenback took a breather ahead of key US trade data. The dollar last changed hands at 1.2156/59 francs, from around 1.2174/79 francs in late Wednesday trading, off three-and-a-half month highs around 1.2262 francs reached earlier this week. Meanwhile, the euro traded at 1.5573/81 francs, from 1.5572/77 francs late on Wednesday.
The dollar had hit multi-month highs against a set of currencies this week after Federal Reserve chief Alan Greenspan said that market forces and greater US budget discipline should help reduce the record US current account gap.
But the dollar then sold off slightly after comments that markets might have misinterpreted the comments and that Greenspan had listed many reasons why the deficit was not likely to shrink soon.

Copyright Reuters, 2005

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