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The Swiss franc rose against all ofits 16 most-traded counterparts as crude oil climbed to a 29-month high on concern turmoil in North Africa and the Mideastwill disrupt supply, encouraging investors to seek refuge.

The dollar lost the most in a five days versus the euro insix weeks on speculation a gain in U.S. payrolls last monthwon’t be enough to spur the Federal Reserve to raise interestrates soon even as the European Central Bank prepares to liftits borrowing costs.

“We’re seeing a certain amount of flight to qualitybecause of concerns in the Middle East,” said Dennis Cajigas, asenior market strategist at the brokerage MF Global HoldingsLtd. in Chicago. “The Swissie is making big moves largely dueto that.”

The franc rose 0.8 percent to 92.45 centimes per dollar at5 p.m. in New York, from 93.16 yesterday, and strengthened 0.4percent for the week. it reached a record high of 92.02 centimeson March 2. The Swiss currency gained 0.6 percent against theeuro to 1.2933, from 1.3013.

The greenback weakened 0.1 percent to $1.3987 per euro,from $1.3969 yesterday, after earlier gaining 0.2 percent. Itreached $1.40 for the first time since Nov. 8. The sharedcurrency was little changed at 115.13 yen, and the dollar fell0.2 percent to 82.32 yen.

Futures traders increased bets the euro will gain versusthe dollar to the most since January 2008, figures from theWashington-based Commodity Futures Trading Commission showed.

The difference in the number of wagers by hedge funds andother large speculators on an advance in the euro compared withthose on a drop — so-called net longs — was 51,308 on the weekended March 1, the most since Jan. 11, 2008.

Forces loyal to Libya’s Muammar Qaddafi used tear gas andgunfire to suppress protests in Tripoli as rebels pushed theirfront lines westward to Ras Lanuf, an oil port town abouthalfway to the capital from opposition-stronghold Benghazi. Theconflict has left 6,000 people dead, the opposition forces’spokesman, Abdullah Al Mahdi, told Al Jazeera today.

Crude oil for April delivery rose as much as 3.2 percent to$105.17 a barrel in New York, the highest level since September2008. U.S. stocks declined, with the Standard & Poor’s 500Index dropping 0.7 percent.

The franc tends to strengthen during periods of financialstress because Switzerland’s export-reliant economy doesn’t needforeign capital to balance the current account, the broadestmeasure of trade.

The dollar fluctuated against the euro after LaborDepartment data showed U.S. employers added 192,000 workers inFebruary, compared with a Bloomberg News survey forecast for196,000. The unemployment rate unexpectedly fell to 8.9 percent,the lowest level since April 2009.

“The unemployment number was by no means a blowout numberthat’s going to make the Fed consider tightening any timesoon,” said Boris Schlossberg, director of research at onlinecurrency trader GFT Forex in New York. “That leaves the ECB wayout front in terms of interest-rate differential.”

The greenback tumbled yesterday after ECB President Jean- Claude Trichet said the central bank may increase interest ratesat its next meeting to counter inflation pressures. Fed Chairman Ben S. Bernanke reiterated on March 1 in Senate testimony thatwhile growth will quicken in the U.S., he still wants to see a“sustained period of stronger job creation.”

IntercontinentalExchange Inc.’s Dollar Index, which tracksthe greenback against the currencies of six major tradepartners, lost 1.1 percent for the week as investors speculatedthe Fed would lag behind other central banks in raising interestrates. The gauge is weighted 57.6 percent to movements in theeuro, which surged 1.7 percent against the dollar this week, themost since the five days ended Jan. 21.

The Brazilian real dropped 0.3 percent to 1.6546 perdollar, erasing earlier gains, after a report that the nation’sgovernment may announce new measures next week to curb thecurrency’s appreciation.

The moves could include a tax increase and strictercontrols of foreign capital and could be announced March 9 or10, the Sao Paulo-based IG news service reported without sayingwhere it got the information.

New Zealand’s dollar fell against most major counterpartsafter the International Monetary Fund said it will likely cutthe nation’s growth forecast.

The kiwi, as the currency is nicknamed, touched its weakestlevel in five months against the greenback. it reached 73.39U.S. cents today, the lowest level since Oct. 1, before tradingat 73.83 cents, down 1.8 percent from 75.16 on Feb. 25. Itslipped 0.4 percent today.

The Reserve Bank of New Zealand will reduce its benchmarkrate by 15 basis points over the next 12 months, compared with aprediction for an increase of 54 basis points a month ago,according to a Credit Suisse Group AG index. Two earthquakes inthe past six months may have caused as much as NZ$20 billion($15 billion) of damage, Prime Minister John Key has said.

The South Korean won gained versus most major peers, rising0.5 percent to 1,114.60 per dollar. Asian currenciesstrengthened this week, with the Bloomberg-JPMorgan Asia DollarIndex increasing 0.4 percent, on speculation central banks willtolerate appreciation and raise borrowing costs to tameinflation.

To contact the reporters on this story:Allison Bennett in New York at abennett23@bloomberg.net;Catarina Saraiva in New York at asaraiva5@bloomberg.net

To contact the editor responsible for this story:Dave Liedtka at dliedtka@bloomberg.net

Swiss Franc Strengthens Against Major Peers as Crude Oil Climbs on Turmoil

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