The Swiss franc was slightly firmer on Friday against the dollar after the US currency yielded to a broad rally in the euro in the wake of the European central bank's decision to raise interest rates.
Overnight Japanese investors were keen to buy the euro after the European Central Bank raised rates as expected and ECB President Jean-Claude Trichet warned about inflation risks.
The ECB lifted rates to 2.5 percent, a three-year high, and investors see the central bank pressing on with more credit tightening. Markets are putting a roughly 30 percent chance on rates climbing to 3.25 percent by year end.
Such a series of rate increases might erode the dollar's advantage that powered its 15 percent rally against the euro and the yen last year.
The dollar stood at 1.3004/07 francs down from around 1.3044/49 late on Thursday. The euro changed hands at 1.5640/42 francs from levels near 1.5656/61 francs late in the previous session.
The euro dipped to $1.2025, but was still not far removed from a one-month high of $1.2046 hit the previous session.
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