FOREX-Swiss franc slides on SNB measures but to stay high

* Swiss franc retreats from highs vs dollar and euro

* Global growth uncertainty pares franc losses

* SNB measures seen as temporary fix for franc

* Dollar slides vs yen amid intervention worries

(Updates prices, adds quotes and graphics)

By Julie Haviv

NEW YORK, Aug 3 (Reuters) - The Swiss franc fell from
record highs against the dollar and euro on Wednesday after the
Swiss National Bank unexpectedly cut interest rates, a
direction that should prove fleeting as global growth concerns
keep up demand for the safe-haven currency.

The SNB said the franc was massively over-valued, keeping
alive the prospect of intervention. [ID:nWEA8468] That also
sharpened the focus on Japanese authorities who warned again
they were uncomfortable with the rising yen [ID:nL3E7J24NW].

Early euphoria for the euro and dollar faded as U.S, growth
uncertainty and concerns about peripheral euro zone economies
prompted investors to pair bets against the safe-haven franc.

Pressure has grown on both the Swiss franc and yen as safe
havens as the U.S. economy, the world's largest, remains
fragile with many recent indicators showing it is running out
of steam.

"We are seeing a little bit of a repeat performance of
yesterday's risk aversion," said Brad Dechtel, managing
director and head of sales at Faros Trading in Stamford,
Connecticut.

"The SNB measures were definitely a signal that they are
serious about stopping the Swiss franc's rise, but it is not
enough to stop its rally," he said. "The Swiss franc's
safe-haven status remains very much in play."

The euro had hit a record low of 1.0794 francs on trading
platform EBS just before the SNB's move. It last traded at
1.0956 francs EURCHF, up 1.1 percent, but down sharply from a
session high of 1.1146.

A weaker-than-expected report from the Institute of Supply
Management followed data from ADP showing U.S. private sector
employment rose more than expected in July, [ID:nEAPA30DMO]
[ID:nEAPA30EHO]

Challenger, Gray & Christmas, meanwhile, said the number of
planned layoffs at U.S. firms rose to a 16-month high in July.
[IDnN9E7ID00L]

The U.S. Labor Department's July nonfarm payrolls report, a
key market factor every month. will be released on Friday.

The dollar also pared gains against the Swiss franc and
last traded at 0.7658 francs CHF=, up 0.4 percent, but down
significantly from the SNB-induced session high of 0.7787.

Faros's Dechtel said they prefer a long position in a
basket of currencies with commodities exposure that is equally
weighed against the dollar.

The position is up 8.5 percent since they initiated it in
February, he said.

"Exposure to currencies linked to commodities and in
countries with strong underlying fundamentals has worked
well."

The euro gained against the dollar, rising 0.9 percent at
$1.4316, but widening peripheral bond yields are likely to cap
the common currency's rise. [GVD/EUR]

The SNB will be wary of intervention to weaken the franc,
however, having spent nearly $21 billion trying the check the
currency's gains between March 2009 and June 2010.

"The SNB will be reluctant to intervene in the currency
markets again after their intervention at 1.50 francs which was
perceived as being unsuccessful," said Adrian Schmidt, currency
strategist at Lloyds Banking Group.

"However, maybe the threat of intervention will force
people to look for other potential safe havens."

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For graphic on ADP versus the U.S. Labor Department
r.reuters.com/ryj92s

U.S. services sector r.reuters.com/sek92s

U.S. planned layoffs r.reuters.com/dyj92s

For HSBC's view on currency intervention, click on
link.reuters.com/faj92s
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

The dollar hit a session low of 76.84 yen JPY=, down 0.3
percent, with investors cautious given the risks of
intervention. It hit a four-month low of 76.29 yen earlier this
week, close to March's record low of 76.25 yen.

Attention is turning to the Bank of Japan which could ease
monetary policy at a meeting later this week. One possible step
may be to expand the size of the BOJ's asset-buying scheme,
which stands at 10 trillion yen. [ID:nL3E7J301W]

(Additional reporting by Anirban Nag and Neal Armstrong in
London; Editing by Andrew Hay)