(Updates at 0850 GMT)

By Harry Robertson

LONDON, June 20 (Reuters) -

The dollar climbed on Thursday, while the Swiss franc

dropped and the pound dipped as a busy day of central bank

meetings kept currency traders alert.

The dollar index, which tracks the currency

against six peers, was last up 0.28% at 105.49 after a volatile

10 days that has seen mixed signals from the U.S. economy and

European markets rocked by French political uncertainty.

Helping the U.S. currency climb was a drop in the Swiss

franc after the

Swiss National Bank

lowered interest rates to 1.25%, following on from a cut in

March.

The dollar climbed 0.64% to 0.8901 francs as

the Swiss currency fell from around a three-month high in the

wake of the rate cut, which came with forecasts predicting a

further fall in inflation to 1.1% in 2025.

"Given the appreciation of the franc in the context of

the French political turbulence, we had expected a dovish

message, but not a cut," said Christian Schulz, deputy chief

European economist at Citi.

"This cut could be premature if French politics

stabilise and weakens the franc," he said. The franc is seen as

a safe haven and had risen over the last week.

Sterling slipped on Thursday ahead of a

Bank of England

(BoE) interest rate decision at 1100 GMT at which the

central bank is expected to hold borrowing costs at a 16-year

high of 5.25%.

The pound was down 0.14% on Thursday at

$1.2701, but up from a one-month low of $1.2658 on Friday.

"The FX focus today switches to central bank meetings in

Europe," said Chris Turner, global head of markets at lender

ING.

"We think that the risks of a dovish Bank of England are

underpriced," he said, using a term that typically means

policymakers support interest rate cuts.

Elsewhere, the Norwegian crown rose to a four-month high

against the euro after the

Norges Bank

held rates at a 16-year high of 4.25%.

The euro fell to its lowest since late January against

the crown at 11.286, down around 0.6%.

Volatility in currency markets has picked up over the

last 10 days as political uncertainty in Europe has combined

with the long-standing guessing game about central bank rate

cuts to cause investors new problems.

The U.S. dollar rallied last week while the euro tumbled

to its lowest since May 1 as

markets fretted

that French President Emmanuel Macron's gamble to call

parliamentary elections could pave the way for the high-spending

far right or far left to come to power.

Markets have been more placid this week. The dollar

dipped after data on Tuesday showed

U.S. retail sales

were lower than expected in May, adding to some signs that

the economy is slowing and could allow the Federal Reserve to

cut interest rates in September. However, separate data showed

manufacturing production surged last month.

The euro was on the back foot again on

Thursday, down 0.24% at $1.0716 but still above the six-week low

of $1.0667 hit on Friday.

Euro zone bond markets

face a test

on Thursday as France auctions debt in the midst of the

political uncertainty.

Japan's yen fell to its lowest since April 29, when

Japanese authorities launched their latest round of

intervention

to prop it up. The dollar rose as high as 158.45

yen, up around 0.25%.

The country's top currency diplomat

Masato Kanda said

there is no limit to the resources available for foreign

exchange interventions, according to Jiji News Agency.