5 April 2004, 10:32  Swiss franc eases as jobs report propels dollar

The Swiss franc eased further on the dollar on Monday, with the greenback expanding gains after March U.S. employment data topped all expectations and signalled that the U.S. economy might be on a firmer path to recovery. The dollar firmed to 1.2934/39 francs from 1.2893/2903 late on Friday in Europe, while the euro eased to 1.5643/53 francs from 1.5666/71. If the U.S. labour market firmness was sustained, dealers said, this could pave the way for the Federal Reserve to start raising interest rates from the current low of one percent. Referring also to recent Swiss indicators, which have supported expectations of a gradual recovery in the economy, dealers said the combination of improving Swiss and U.S. data might lead the Swiss National Bank to change its policy stance. "If we continue to see positive numbers in the U.S. and in Switzerland, the SNB will find it increasingly difficult to explain why it would not raise rates in June," UBS economists said in a note. To date, market expectations have called for an SNB rate rise in September at the earliest.///www..com

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