The Swiss franc fell sharply against the euro on Friday, staying well clear of an all-time high hit earlier this week, as risk appetite increased, boosting the euro. The Swiss National Bank is widely expected to keep its interest rate target at ultra-low levels at its policy meeting next Thursday, despite the strength of the economy, as the soaring Swiss franc poses a risk to economic recovery.
"The euro is stronger this morning as we are seeing risk appetite picking up a little," said Marcus Hettinger, a forex strategist at Credit Suisse. The franc fell 0.8 percent against the euro compared to the New York close, trading at 1.299 per euro, well off the record high of 1.2763 hit on Wednesday. The franc was down around 0.7 percent against the dollar at 1.0216 per dollar.