Swiss franc firms on security fears

20 Mar, 2004

The Swiss franc held firmer levels against the dollar and euro on Friday, lifted by security fears which knocked the greenback in the previous session and shrugging off the Swiss National Bank's unchanged rate decision.
The Swiss currency was trading just below a 16-day high against the dollar, having spiked on Thursday on renewed security concerns in a market made jittery by blasts in Madrid last week.
The franc brushed off the SNB's widely expected decision on Thursday to leave key interest rates unchanged, holding borrowing costs at record lows while awaiting a recovery.
However, dealers noted that after Swiss exports surged in February by over five percent, it's economy looked to be firmly on the mend. This had pushed the franc to a 12-week high against the euro and near the euro's key support level of 1.5550 francs.
The dollar was steady at 1.2578/83 francs from 1.2575/82 late on Thursday in Europe, having slipped from 1.2828 on Wednesday. The euro was also little changed at 1.5579/84 francs, but down from 1.5652 in Wednesday's session.

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