The U.S. dollar fell below the Swiss franc for the first time ever Friday. The dollar briefly dipped to 0.9986 francs in international trading before rising above parity again, according to AP. The U.S. currency's decline against the franc mirrors its fall against the euro. The 15-nation euro reached a new record of US$1.5651 Friday on news of financial woes at U.S. Bank Bear Stearns Cos. Marcus Hettinger, head of currency exchange research at Credit Suisse, believes the market is working on the assumption that the U.S. Federal Reserve will lower interest rates to 2 percent by this summer. Hettinger said in a recent interview that the dollar would likely stabilize versus the franc, which has seen a revival of its status as a «safe haven» currency since the start of the global financial turmoil last year. Switzerland's strong economy and the end of a run on the franc due to so-called carry trading has also helped revive the Alpine country's currency, he said. The rising value of the franc against the dollar has worried Swiss exporters, and market observers have closely monitored the exchange rate as it approached the psychologically important mark of one-to-one. In 1971, the U.S. dollar was worth four francs. The greenback last came close to parity with the franc in April 1995, falling to 1.11 francs. At the end of last year the U.S. dollar was worth some 1.25 francs.
