The Swiss franc rose as the currency market awaited US Federal Reserve Chairman Alan Greenspan's congressional testimony on the state of the economy, due later on Wednesday. The dollar last changed hands at 1.1904/07 francs down from 1.1955/60 francs in late Monday trade. Greenspan is expected to repeat the Fed's statement calling monetary policy accommodative and saying that it would be tightened in a measured way, though some economists wondered whether he would hint at a pause in the tightening cycle.

Higher interest rates in the United States would draw liquidity into dollar-denominated deposits, thus supporting the greenback on the world currency markets.

In Switzerland, market-watchers will be looking to producer price index figures, due out on Thursday, for an indication as to likely consumer price inflation in coming months.

The euro stood at 1.5494/97 francs, from levels of 1.5504/09 on Monday.

Copyright Reuters, 2005