* Dollar regains ground after previous day's slide
* Euro, high-risk FX struggle, stock rally fizzles
* Swiss franc falls; traders say no intervention seen
(Adds quotes, updates prices)
By Jessica Mortimer and Naomi Tajitsu
LONDON, Oct 30 (Reuters) - The dollar recovered on Friday
from its declines the previous day on the back of solid U.S.
growth figures, while the Swiss franc fell sharply on market
jitters of suspected intervention.
Traders said the market was nervous about intervention by or
on behalf of the Swiss National Bank to keep the franc's
strength in check because the euro had fallen to levels around
1.5080 francs where the SNB had already intervened this year.
The Swiss National Bank declined to comment. []
The euro held above a 2-1/2-week low against the dollar
after it rose on Thursday, when data showing the U.S. economy
grew for the first time in more than a year had raised optimism
about the global economic recovery and stoked risk appetite.
European shares <> failed to add significantly to its
rally from the previous day, suggesting that some of the initial
euphoria from the U.S. figures may have fizzled, while U.S.
stock futures <SPv1> fell 0.4 percent.
Currencies seen as being higher-risk struggled to make
headway as stocks posted limited gains, while the yen also
erased some of the previous day's falls.
"The market is waiting to see if the rise in risk appetite
is durable," said Jeremy Stretch, strategist at Rabobank in
London.
"The recovery is continuing, but there are enough question
marks to keep the market worried," he said, adding that a
comatose job market and the wind down of the "cash for clunkers"
scheme raised questions about whether U.S. growth will continue.
By 1209 GMT, the euro <EUR=> fell 0.2 percent on the day at
$1.4810. However, it managed to tread above $1.4681 hit the
previous day before the U.S. GDP data.
A reading of U.S. manufacturing activity in Chicago is due
later in the day, as well as a final reading of consumer
sentiment to better gauge whether the economy is emerging from
recession.
"We may see some more unwinding of risk ahead of some big
events next week, but as long as the data hold up then the risk
trade is likely to hold up too," said Paul Robson, currency
strategist at RBS in London.
SWISS FRANC FALLS
The Swiss franc fell as jitters were sparked after the euro
had fallen to around 1.5080 francs, around levels that the SNB
has already intervened this year to prevent further strength in
the franc.
The euro <EURCHF=> then jumped as high as 1.5180 francs,
according to electronic trading platform EBS, its highest since
mid-October, and the dollar <CHF=> jumped to 1.0242 francs from
around 1.0175 francs.
Higher-risk currencies including the Australian <AUD=D4> and
New Zealand dollars <NZD=D4> slipped around 0.4 percent versus
the dollar, but analysts said losses may be limited,
particularly if more signs of U.S. recovery emerge.
"Higher-risk currencies are down slightly today, but
yesterday's very positive GDP number has given support to the
risk trade, and that should carry over today and into next
week," said Sverre Holbek, currency strategist at Danske in
Copenhagen.
The dollar <JPY=> fell 0.2 percent to 91.25 yen, while the
euro fell 0.3 percent to 135.17 yen <EURJPY=R>.
Market participants waited to see if yen selling would
materialise from Japanese investment trusts given that a new
launch drew 189.6 billion yen ($2.1 billion) from Japanese
retail investors on Friday, the year's biggest first-day launch
for a single series of Japanese toushin mutual funds.
(Editing by Chris Pizzey and Victoria Main)
