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  • Nov 10th, 2005
  • Comments Off on Swiss franc hovers near 18-month lows
The Swiss franc was steady against the dollar on Wednesday, trading at 18-month lows, as market expectations the US Federal Reserve bank will continue to raise interest rates supports the greenback's rally.

The Fed's 16-month campaign of steady tightening has taken overnight interest rates to 4 percent, and with the central bank expected to keep pushing rates up investors have increasingly shifted funds to the dollar.

Higher interest rates mean more attractive conditions for investors in dollar-denominated securities.

The dollar last traded at 1.3116/19 Swiss francs from 1.3116/21 in late trading in Europe on Tuesday. The euro stood mostly unchanged at 1.5424/29 francs from 1.5422/27 francs.

In Switzerland fourth quarter consumer confidence figures, due out on Thursday, are expected to support the Swiss economy's recent pick-up and underline hopes of an interest rate rise still in this year.

Copyright Reuters, 2005


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