The Swiss franc rose to one-month highs against the dollar early on Monday after the greenback was dented by the view that the European Central Bank (ECB) will continue raising interest rates.
Positive sentiment for the euro kept the dollar under pressure after the ECB last week raised interest rates to a 3-year-high and revised up its inflation forecasts for 2007.
The dollar inched higher on Friday after the Institute for Supply Management (ISM) services index for February reported a better-than-expected reading of 60.1 points, versus 56.8 points in the previous month.
The dollar stood at 1.2937/40 francs, down from around 1.3006/11 late on Friday. The euro francs late in the previous session. Investors in Switzerland were awaiting Swiss jobless and consumer price data due this week which are expected to give an indication as to how fast the Swiss National Bank (SNB) will raise interest rates in the coming quarters.
A 25-basis-point rate rise is fully priced in for later this month while some expect further quarter-point increases at each of the SNB's quarterly meetings in June, September and December.
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