ZURICH, Feb 9 - The Swiss franc firmed against the dollar early on Monday on doubts the Group of Seven (G7) nations would act to support their weekend warning against "excessive volatility" in exchange rates. The greenback last changed hands at 1.2318/23 francs down slightly from 1.2348/53 late in Europe on Friday as dealers doubted the G7 statement would halt the trend for a weaker dollar. The euro firmed to 1.5684/94 francs from 1.5663/68. "Excess volatility and disorderly movements in exchange rates are undesirable for economic growth," the G7 said in a communique after a two-day meeting in Florida. The greenback initially rose against major currencies in reaction to the G7 statement as dealers took it as a sign that Washington had paid heed to European and Japanese concerns about the U.S. currency's sharp fall. But gains quickly evaporated as the market decided the warning did not herald action to support the sagging dollar.
European officials have been expressing concern about the dollar's decline. Last week, European Central Bank President Jean-Claude Trichet warned about the risk of excession exchange rate movements after the ECB kept interest rates on hold. A weak dollar makes European exports less competitive. Swiss National Bank board member Philipp Hildebrand warned last week that further dollar weakness against the franc would be unpleasant but this would be offset by the softer franc against the euro, the currency of Switzerland's main trading partner.//