The Swiss franc strengthened against the dollar early on Thursday on fears that the greenback's recent rally might have gone too far. The market is waiting for US payroll figures, set to be published on Friday, which economists expect will show a loss of 129,000 jobs in September as layoffs in the wake of Hurricane Katrina offset gains in the rest of the country.
Recent comments by Federal Reserve officals have stoked inflation concerns, leading to an expectation that the central bank would stick to its tightening policy, and thus supporting the US currency.
The dollar last traded at 1.2827/29 Swiss francs, from 1.2934/44 francs in late trading in Europe on Wednesday. The euro stood at 1.5470/73 francs, compared to 1.5487/92 on Wednesday.
Domestically, the influential KOF think tank is due to publish its latest growth forecasts later in the session, while Swiss September jobless data are due on Friday.
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