The Swiss franc fell against the dollar and euro on Friday as investors grew more confident about taking on risk, as fears about a US recession eased and European equity markets were expected to open higher. "We see a stronger euro and dollar versus the Swiss franc today as we expect good equity markets," said Clariden Leu's Sandro Baechli.
"Risk appetite has been increasing over the last couple of days and putting the franc under pressure," he said. The franc was 0.24 percent weaker against the dollar when compared to the New York closing level, at 1.1322 per dollar. The greenback firmed across the board ahead of the US jobs report due later in the session.
Against the euro, the franc was 0.05 percent weaker at 1.6540 per dollar. US and Asian markets were also stronger after US President George W. Bush unveiled plans aimed at stemming US home loan foreclosures.
The strength of the franc has become linked to stock markets this year, with any gains in equities seen as a positive for risky positions like carry trades - borrowing funds in low-yielding currencies, like the franc and the yen, to buy higher-yielding currencies.