The Swiss franc was stable against the dollar and the euro in quiet year-end trading on Friday, with the greenback under pressure as traders positioned themselves for further losses in the currency next year. The ailing dollar, which has taken a battering on worries about the gaping US current account deficit, hovered near multi-year lows against the franc as 2004 drew towards its close.

The dollar stood at 1.1337/42 francs in early trading, scarcely changed from 1.1338/43 late on Thursday. The euro last changed hands at 1.5430/32 francs, against 1,5451/56 on Thursday.

Moderate Swiss inflation data on Thursday did little to dampen the franc, cementing already widely-held views that the momentum of the Swiss economic recovery is slowing.

The Swiss National Bank (SNB) kept interest rates on hold at 0.75 percent earlier this month, citing lacklustre economic data and a strong franc - which makes Swiss exports less competitive and could crimp growth.

Copyright Reuters, 2005