ZURICH: The Swiss franc rose against the dollar and euro on Friday in thin summer trading, but its rise against the greenback was capped by expectations the US Fed may taper its monetary stimulus later this year.
US Federal Reserve Chairman Ben Bernanke said this week the US central bank still expects to start reducing its bond purchasing later this year, but that the option of changing that plan if the economic outlook were to deteriorate remained.
Latest economic figures from the United States indicated a recovery in the world's largest economy was on course, with factory activity in the Mid-Atlantic region picking up in early July and new claims for jobless benefits falling last week.
"With the testimony by Fed Chairman Bernanke out of the way and in an environment of illiquid markets due to the summer lull, positioning results in increased volatility on FX markets of late," said Reto Huenerwadel at UBS.
Elsewhere, currency dealers are watching a G20 meeting of central bankers and finance ministers taking place in Moscow.
The franc rose 0.2 percent against the dollar to trade at 0.9422 by 0726 GMT compared to the New York close.
The franc rose 0.1 percent against the euro to 1.2371.
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