Dollar falls on Asian, European stock marts

TOKYO (AFP): The dollar lost steam on the Tokyo foreign exchange market yesterday mainly because of falls overseas.

It closed at 96.76 yen, down 0.64 yen from the previous day's finish of 97.40 yen here and lower than 97.13 yen quoted in New York late Monday.

After opening at 96.93 yen, the greenback moved between 96.73 yen and 97.03 yen here yesterday.

Spot turnover increased from the previous day's $3.408 billion to $6.411 billion.

In Singapore, the greenback weakened yesterday against most of the major currencies in moderate trading, dealers said.

Dealers said the dollar was sold down against the yen as overseas funds liquidated their long positions on the greenback.

Rates provided by Banque Nationale de Paris showed the dollar easing to 1.4910 marks at 0900 GMT compared to Monday's close of 1.5010 marks. The dollar opened at 1.4900 marks yesterday.

The dollar weakened to 5.1060 French francs, 96.80 yen and S$1.4700 and was unchanged at HK$7.7270.

In London, the dollar dipped lower against the main European currencies yesterday morning, and dealers predicted the currency could breach last week's record lows.

By midmorning, the greenback was trading at 1.4910 marks against 1.4903 at the Tokyo close and 1.4950 at the London close on Monday. Against the yen, the dollar was trading at 96.85 yen against 96.76 in Tokyo and 97.25 in London.

On Friday, the US currency fell to a 1945 record low at 96.55 yen, and to a two-year low against the mark at 1.4880 marks.

In Paris, the dollar fell sharply to 5.1067 French francs in initial trading yesterday from 5.1390 at the close on Monday.

The mark also fell to 3.4248 francs from 3.4270.

The dollar was being quoted at 1.4905 marks from 1.4995 and 96.75 yen from 97.24.

In Hong Kong, Gold closed higher yesterday at US$390.20-390.50 an ounce, against the previous day's closing rate of $389.10- 389.50.

The market opened at $389.50-389.90.