Swiss franc around seven-year highs against dollar

07 Jan, 2004

The Swiss franc was trading at levels around more than seven-year highs against the dollar in early Tuesday trading amid concerns about the US current account deficit, but was little changed on the euro.
The Swiss franc was trading at 1.2317/22 against the dollar compared with 1.2325/30 late on Monday and around levels last seen in September 1996.
The euro was steady at 1.5626/31 although it remained within its recent upward trading range. Swiss National Bank Chairman Jean-Pierre Roth said over the weekend the weakness of the dollar was a pan-European problem: "We cannot influence the dollar exchange rate ourselves."
Some economists caution that the export dependent Swiss economy, currently clawing its way out of a double-dip recession, could be hurt by ongoing dollar weakness.
While the euro maintained its upward trend, UBS said in its daily markets note it could not rise indefinitely against the franc - the euro has risen from below 1.5450 francs since mid-December - particularly as a Swiss rate hike was expected in the first quarter.

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