Dollar recovers in Europe as U.S. bond prices rise

LONDON (UPI): The dollar extended its overnight gains in European trading yesterday as firmer U.S. bonds prompted some short-covering ahead of the weekend.

The greenback was quoted at 1.6380 German marks near midmorning, up from 1.6300 at the previous London close. Against the yen, the U.S. currency was trading at 103.58, up from 103.34 at the previous London finish.

The dollar was boosted by rising U.S. government bond prices and a technical bounce after testing lows against the mark and Japanese yen in the past two sessions, dealers said.

Sterling was sidelined, weakening slightly amid question marks over whose jobs would change in the Cabinet reshuffle Prime Minister John Major said was looming. The currency moved up on the mark though, in line with the stronger dollar.

Sterling was trading at 1.5188 dollars, down from 1.5200 previously. The pound was quoted at 2.4895 marks, up from Thursday's close at 2.4805.

In Frankfurt, the dollar opened at 1.6335 German marks, up from 1.6318 at the previous close.

In Zurich, the dollar opened at 1.3750 Swiss francs, up from 1.3710 at the previous close.

In London, the pound opened at US$1.5195, down from $1.5200 at the previous close.

In Brussels, the dollar opened at 33.73 Belgian francs, up from the previous close at 33.55.

In Paris, the dollar opened at 5.5782 French francs, up from 5.5670 at the previous close.

Official currency exchange markets remained closed in Italy, but in unofficial dealing the dollar opened at around 1,605.00 lira, up from the previous Bank of Italy indicative quotation of 1,595.16 lira.

In Tokyo, the dollar closed at 103.55 Japanese yen, up from the previous close at 102.87.

In Singapore, the dollar closed at S$1.5340, up from S$1.5320 at the previous close.

In Hong Kong, the dollar closed at HK$7.7305, up from HK$7.7295 at the previous close.

Gold opened in Zurich at $386.00, down from $386.70 at the previous close. In London, gold opened at $385.75, unchanged from the previous close.

Gold closed at $385.75 in Hong Kong, down from $387.35 at the previous close.

Silver opened in Zurich at $5.47, down from the previous close at $5.54, while in London it also started trading at $5.47, down from the previous close at $5.48.