The Swiss franc eased against the dollar in trading on Thursday, with the market starting to focus its attention to next week's Federal Reserve meeting for a signal on how much US interest rates will rise.
The dollar stood at 1.3063/67 Swiss francs, a little firmer than the 1.3020/23 francs level late on Wednesday. The euro traded little changed at 1.5754/54 francs versus 1.5742/47 francs late in the previous session.
The euro has strengthened against the franc in recent sessions on the view Swiss interest rates will remain low for some time, making the euro an attractive funding currency.
The SNB last week increased its benchmark interest rate target by a quarter percentage point to 1.25 percent, still well below the 2.50 percent offered in the euro zone.
Elsewhere, interest rates are on the rise as well. Earlier this week the dollar perked up against major currencies as investors interpreted upbeat comments on the economy and housing market from Fed Chairman Ben Bernanke as a sign that rates could rise beyond next week's expected increase.
The Fed is almost unanimously seen lifting rates to 4.75 percent from 4.5 percent at a two-day meeting ending on Tuesday and market players are now wondering whether the US central bank will raise rates to 5 percent or more at in May and June.
The European Central Bank is also poised to raise rates further from 2.5 percent and the Bank of Japan is expected to lift them from zero by year-end.
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