Swiss Franc Holds Close to Six-Week High

The Swiss franc traded close to a six- week high against the dollar after a government report showed the jobless rate held at the lowest level in almost five years.

The franc also held near 1 euro cent of the highest level in six weeks versus the euro as traders added to bets the Swiss National Bank will raise its main refinancing rate this year. European Central Bank President Jean-Claude Trichet said June 5 that policy makers may raise euro region rates next month.

Switzerland's currency rose as much as 0.4 percent to 1.0149 per dollar, the highest level since April 24, and was trading at 1.0198 by 2:11 p.m. in Zurich, from 1.0185 on June 6. The franc was at 1.6103 per euro, from 1.6075.

The seasonally adjusted unemployment rate stayed at 2.5 percent last month, matching the lowest rate since July 2002, the State Secretariat for Economic Affairs in Bern said today. The jobless rate for April was revised to 2.5 percent from a previously reported 2.6 percent.

The implied yield on the three-month Swiss franc interest- rate futures contract due December rose 8 basis points to 3.40 percent, from 3.03 percent a week ago.

Swiss government bonds fell, with the yield on the 3 percent note due June 2017 rising 3 basis points to 3.29 percent. Yields move inversely to bond prices.

Swiss Franc Holds Close to Six-Week High, Bloomberg
6/9/2008 6:18:36 AM