The Swiss franc weakened against all of its 16 most-traded peers as investors sought higher-yielding currencies amid confidence policy makers and bankers have staved off a Greek default.
The currency slid for a fifth day versus the euro as data showed Swiss manufacturing growth slowed. The euro had its first weekly gain in a month versus the dollar as Greek Prime Minister George Papandreou won approval for an austerity plan needed to keep aid flowing, while German banks agreed to roll over Greek bondholdings maturing through 2014.
“The risk of a default has really fallen significantly and Greece is moving in the right direction, so that’s why we’re seeing traders reduce their safe-haven bets and buy euros and other currencies,” said Kathy Lien, director of currency research with online currency trader GFT Forex in New York.
The franc tumbled 1.1 percent to 1.2316 versus the euro at 5 p.m. in New York. It depreciated 0.9 percent against the dollar to 84.78 centimes.
The euro rose 0.2 percent to $1.4526 and advanced 2.4 percent for the week. The European currency climbed 0.5 percent to 117.42 yen. The dollar rose 0.3 percent to 80.831 yen.
The European currency fell as much as 0.5 percent versus the greenback after the Institute for Supply Management’s factory index showed U.S. manufacturing unexpectedly expanded in June. The measure rose to 55.3 last month from 53.5 in May, the Tempe, Arizona-based group said today.