The Swiss franc traded around five-month lows against the dollar on Wednesday after comments from US Federal Reserve Chairman Alan Greenspan fanned market expectations for a rise in US interest rates soon.
The dollar was at 1.3140/45 francs in early Wednesday business, compared with 1.3070/80 francs in late Swiss trading ahead of the testimony on Tuesday, while the euro last changed hands at 1.5535/45 francs after around 1.5574 francs.
Greenspan said US firms were regaining the power to raise prices and that deflation concerns had evaporated in the last few weeks, signalling higher rates may be on the horizon.
The market was also looking ahead to a meeting of Group of Seven finance ministers and central bankers in Washington on Friday and Saturday where currency markets are expected to be discussed.
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