Dollar rallies against mark and higher in Europe

LONDON (UPI): The U.S. dollar rallied against the German mark yesterday morning following encouraging comments by the Bundesbank's chief economist and traded higher against all major European currencies.

In London, the U.S. currency was quoted at 1.4836 marks, up on the previous finish of 1.4760. In Frankfurt, the dollar opened at 1.4828 marks, also up from the previous day's close of 1.4758.

The powerful German central bank's chief economist Otmar Issing was quoted in the International Herald Tribune, as saying "appreciation of the mark does not fit into the current economic landscape."

Issing's comments were interpreted as a sign that the bank might cut Germany's leading interest rate at next week's central council meeting.

Against the Japanese yen, the U.S. dollar traded in London at 107.86 Japanese yen, up from the previous evening's 107.57.

The British pound was higher despite a higher-than-forecast increase in June's average earnings numbers to 3.75 percent. Dealers said the pound was tracking the dollar and was further boosted by a fall in unemployment.

Sterling was quoted in London at 2.2975 German marks from the previous day's finish of 2.2878 marks. The pound opened at $1.5489 down from US$1.5500.

In Zurich, the dollar was higher, opening at 1.2010 Swiss francs, up from the previous close of 1.2000.

In Paris, the dollar opened at 5.0705 French francs, up from the previous close of 5.0600.

In Brussels, the dollar opened at 30.59 Belgian francs, up from 30.44.

In Milan, the dollar opened at 1,519.50 Italian lira, up from the previous close of 1,515.28.

In Tokyo, the dollar closed at 107.79 Japanese yen, up from the previous close of 107.59.

In Singapore, the dollar closed at S$1.4117, down from the previous close at 1.4128.

In Hong Kong, the dollar closed at HK$7.7338, up a touch from 7.7335.

Gold opened at US$387.50 an ounce in Zurich, down from the previous close at $387.65, while in London it started trading at $387.75, unchanged from the previous close. In Hong Kong gold closed at US$387.45, down from $387.95.

Silver opened at US$5.07 in Zurich, down from $5.09, while in London it opened at $5.10, down from $5.11.