FOREX-Dollar down on reduced safe-haven; Swiss franc falls

* Dollar drops after stronger data erodes safe-haven demand

* Philly Fed factory slump eases sharply in June

* Euro/Swiss franc rises on talk of intervention

* BIS, SNB decline comment on the rise in euro/Swiss (Updates prices, adds comment, changes byline)

By Wanfeng Zhou

NEW YORK, June 18 (Reuters) - The U.S. dollar fell against the euro and higher-yielding currencies on Thursday after a report showing improving regional business conditions dented safe-haven demand for the greenback.

Action in the euro was particularly heavy, with the single European currency jumping versus the Swiss franc amid speculation the Bank for International Settlements was buying euros on behalf of the Swiss National Bank to defend the 1.50-franc level.

Demand for the dollar fell after the Philadelphia Federal Reserve Bank said on Thursday its business activity index for the U.S. Mid-Atlantic region rose sharply to minus 2.2 in June from minus 22.6 in May. That was the highest since September 2008 and well above economists' expectations of minus 17. See [ID:nN18266955].

"The dollar is overall somewhat on the defensive after the Philly Fed report," said Vassili Serebriakov, currency strategist at Wells Fargo in New York. "The improvement was quite notable across the board in the release."