The Swiss franc slipped further against the US dollar in early European trade on Friday, extending Thursday's losses, as traders scaled back their expectations of further rate hikes by the Swiss central bank.
The dollar traded at 1.2686/94 francs, compared with 1.2708/11 in European trading late on Thursday, while the euro last changed hands at 1.5461/66 francs, compared to around 1.5441/46.
The Swiss National Bank raised key interest rates by a quarter percentage point for the second time this year on Thursday, and said policy would remain expansive as the economy continues to recover from recession.
But the Swiss franc fell after the decision, suggesting market expectations for further rate increases were being toned down. The SNB's statement contained some elements that were explained as dovish or not too worried over inflation.