RPT-FOREX-Swiss franc jumps after lending curbs; euro buoyant
* Dollar falls 0.9 pct vs Swiss franc after government move
* Euro helped by short squeeze, German and French surveys
* Canadian dollar falls to new 4-1/2-year low, Aussie slumps
By Laurence Fletcher
LONDON, Jan 23 (Reuters) - The Swiss franc rose sharply against the U.S. dollar on Thursday after the Swiss government raised the level of capital that banks must hold against their mortgage books, tightening monetary conditions.
The euro also rose against the dollar after surveys of French and German business activity came in above expectations.
Comments from the Bank of Canada, which said currency depreciation should help exports, knocked the Canadian dollar to a 4-1/2-year low, however, while the Australian dollar tumbled back towards a 3-1/2-year low after a eaker-than expected survey of Chinese manufacturers.
The U.S. dollar was 0.9 percent weaker at 0.9031 francs and the euro was 0.3 percent lower at 1.2314 francs after the Swiss government's move, which coincided with this week's World Economic Forum in Davos. Continued...