Dollar down on eve of U.S. employment figure

TOKYO (Agencies): The dollar lost ground marginally here yesterday with investors sitting on the sidelines to wait for the release of U.S. employment data for September.

It closed at 99.55 yen, down 0.03 yen from the previous day's finish of 99.58 yen here and lower than 99.60 yen quoted in New York late Wednesday.

After opening at 99.54 yen, the greenback moved narrowly between 99.50 yen and 99.65 yen.

Spot turnover decreased sharply from the previous day's US$6.04 billion to $3.06 billion.

Investors were also waiting for Japan's August international balance of payments to be released on Friday, dealers said, adding they remained concerned about increasing inflationary pressure in the United States.

The mark closed at 1.5434 to the dollar, against 1.5465 the previous day.

In Singapore, dollar ended mixed against most major currencies during quiet trading, dealers said.

The greenback was traded between 1.5430 and 1.5455 marks.

Dealers said that the dollar was confined to range-trading against the Japanese yen, between 99.40 and 99.70 yen.

The dollar opened at 1.5440 marks and weakened to 5.2735 French francs and 99.60 Japanese yen, strengthened to S$1.4795 and was unchanged at HK$7.7270. The British pound eased to $1.5850.

In London, dollar traded at 1.5442 marks and 99.70 yen, compared with 1.5417 and 99.44 in late European trading on Wednesday.

Gold opened and closed lower at $391.80-$392.20 an ounce in Hong Kong, against the previous day's closing rate of $392.10- $392.50. It was weaker and fixed sharply lower in London this morning after Wednesday's rally was choked off at $394 per ounce.

The dollar firmed slightly in New York early yesterday in very quiet trading as investors awaited Friday's publication of U.S. jobless figures for September.

Gold fell 40 cents from Wednesday's closing level to $391.80 an ounce.

At 9:30 a.m. (13:30 GMT) the dollar was quoted at 1.5448 German marks, up from 1.5429 late Wednesday, and at 99.72 yen, up from 99.60. Earlier in the day in London the greenback was quoted at 1.5450 marks and 99.73 yen.

The dollar also gained ground against other European currencies, trading at 5.2784 French francs against 5.2640 Wednesday, 1.2800 Swiss francs (1.2789) and 0.6308 pounds sterling (0.6302).