Euro snaps recent run of losses, Swiss franc rallies on inflation surge

Euro snaps recent run of losses, Swiss franc rallies on inflation surge

By 0745 GMT, the dollar was down 0.3% against a basket of rivals, while the euro climbed 0.4% to $1.0689, following two days of losses. The yen reversed its early weakness and was last at 129.87 yen per dollar, up slightly on the day.

Data this week, stronger than expected in the United States, has reaffirmed the U.S. economy is likely to hold up better than rivals even as the global economy slows.

"Robust U.S. data and an ensuing extinguishing of hopes that the Fed would need to ease hiking expectations were behind the U.S. Dollar rally," said Jeffrey Halley, an analyst at OANDA, describing this week's European economic data by contrast as "soggy".

But a record euro zone inflation reading this week adds to pressure on the European Central Bank, which meets next week for its policy meeting, to act to tame price growth even if that means weakening a slowing economy.

The Swiss franc gained 0.3% to 1.022 francs per euro , a one-month high, after Swiss prices increased by their highest level in 14 years during May.

The 2.9% reading may look modest versus the 8%-plus readings in the euro zone and Britain, but it stands out for a country known for