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Swiss franc hits record highs

London - The Swiss franc hit record highs against the dollar, euro and sterling on Thursday as the safe-haven currency continued to benefit from economic uncertainties heading into the New Year, traders said.

The Australian dollar leapt to a record against the dollar thanks to rallying commodity prices.

Markets were meanwhile awaiting the release on Thursday of US jobless claims and homes sales data.

"The market is closely watching any signs concerning whether there would be a change in the weak US employment situation and on how bad weather has influenced the year-end shopping season," said Yuichiro Harada, a dealer at Mizuho Corporate Bank.

Ahead of the figures, the euro slumped to an all-time low of 1.2396 Swiss francs. The dollar weakened to 0.9374 francs and the pound to 1.4525 - also record low points against the Swiss currency.

The European single currency meanwhile rose to $1.3247 in London on Thursday from $1.3224 late in New York on Wednesday.

The dollar fell to ¥81.45 from ¥81.62 late on Wednesday.

Amid persistent eurozone debt fears, Italy managed to raise more than €8bn in its final bond auction of 2010 but was forced to pay investors sharply higher interest rates.

Rome placed several maturities of bonds, with the yield on those due in 2021 jumping to 4.8% versus 4.43% in the previous auction.

Elsewhere on Thursday, the Australian dollar leapt to a record high of $1.0197.

The resources-based Aussie has traded near or above parity with the greenback since first breaking through on October 15, having surged about 20% since June as Australia experiences a robust mining boom.

Floated in 1982, the Aussie's bullish performance has been buoyed by higher domestic interest rates and a strong economy powered by huge Asian demand for its raw materials.

The US dollar also fell against the yen, with investors leaving the dollar owing to falling American bond yields, dealers said.

In London on Thursday, the euro changed hands at $1.3247 against $1.3224 late in New York on Wednesday, at ¥107.90, £0.8552 and 1.2438 Swiss francs.

The dollar stood at ¥81.45 and 0.9390 Swiss francs.

The pound was at $1.5489.

On the London Bullion Market, the price of gold rose to $1 413.03 an ounce from $1 412.50 late on Wednesday.

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