The Swiss franc rose in early trade on Friday as markets eyed higher interest rates in Switzerland after a speech by a Swiss central banker, while comments abroad pushed the dollar lower.
The Swiss franc jumped on Thursday after Swiss National Bank board member Philipp Hildebrand said the central bank could raise interest rates to avoid long-term distortions even without a near-term inflation threat.
Against the euro, the franc was up 0.1 percent at 1.5931 per euro, slowly gaining from a 6-1/2-year low of 1.5983 per euro hit earlier this week as low Swiss interest rates made the currency a funding currency for carry trades. A speech by SNB chairman Jean-Pierre Roth due for delivery later in the day may give markets further food for thought.
Comments by China's central bank head Zhou Xiaochuan, who said that the country was "considering lots of instruments" to diversify its $1 trillion of reserves, pushed the dollar lower against major currencies in the previous session.
The franc traded 0.3 percent higher at 1.2393 per dollar, as markets speculated that Beijing might start to shift some of its dollar holdings into other assets.
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