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The Swiss franc climbed to an eight-year high against the yen on Friday as the Bank of Japan signalled that interest rates could stay low for some time after it had raised rates for the first time in almost six years.
The BoJ joined central banks in the US and Europe that have embarked on a credit-tightening cycle, although Japan's rate hike remains tiny and further increases are expected to be slow.
The franc traded stronger versus the yen - in line with other major currencies - at 94.2 versus the previous close of 93.82, reaching levels not seen since 1998.
The franc was weaker against the dollar after it had got a boost by safe-haven buying due to mounting political tensions during the previous session. The franc was trading at 1.23, well above a two-month low of 1.2529 reached last month.
The Swiss currency was near flat against the euro, changing hands at 1.5612.
Next week, traders will keep an eye on trade figures and retail sales.

Copyright Reuters, 2006

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