Swiss franc at two-month high

The Swiss franc hit a two-month high against the dollar and bounced off near six-year lows against the euro on Wednesday, on the view that the US Federal Reserve could be winding down its credit tightening campaign.
The US dollar slipped lower against the euro in the previous session, weighed down by growing expectations that the European Central Bank will raise interest rates next month just as the Fed winds down its own two-year rate-rise campaign.
The franc hit its highest level against the dollar since early February, trading at 1.2863/66 compared with 1.2888/93 francs late in the previous session.
The euro was holding just above the key psychological level of 1.58 francs, changing hands at 1.5805/08 compared with 1.5805/10 francs.
The currency hit a high of 1.5857 francs earlier in the week, close to a peak of 1.5870 from March 2004, which if breeches would bring the currency close to six-year highs.