Swiss franc off highs versus dollar after oil weak

04 Dec, 2004

The Swiss franc consolidated below recent highs against the dollar and was stable against the euro on Friday after fears of dollar-buying intervention and a sharp fall in oil prices gave the greenback a shot in the arm. In the previous session, the US currency rebounded from multi-year lows against a range of currencies as dealers took profits and cut back short positions ahead of a key US payrolls report, dealers said.
The dollar last changed hands at 1.1525/31 francs, compared to 1.1518/23 late on Thursday in Europe.
November US non-farm payrolls, due later in the session, are forecast to rise 180,000, building on the strong 337,000 increase in October and cementing the case for ongoing US rate rises.
The euro last traded at 1.5285/89 francs, compared to around 1,5283/88 francs late on Thursday.
The European Central Bank left official interest rates unchanged at 2 percent on Thursday, with President Jean-Claude Trichet saying rate cuts were not discussed and dispelling market views the ECB could intervene to try to curb the euro's strength against the dollar.
European policymakers, including Swiss central bankers, have become increasingly vocal about the dollar's weakness, which undermines the competitiveness of their exporters and thus threatens an economic upswing in Europe.
In Switzerland, the central bank will decide whether to hike rates above 0.75 percent on December 16, with markets scaling back their expectations of a 25 basis point rise amid currency concerns and signs of slowing economic growth.

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