Dollar steady in European trading
LONDON (UPI): The dollar was steady in European trading yesterday, after showing little movement in Far Eastern trading overnight.
Most attention was focused on the pound after a new batch of economic data.
The British currency edged up slightly after inflation, unemployment and earnings data were released, trading at 1.5200 dollars, up from its previous London close at 1.5185.
Against the German mark the pound was trading at 2.4960 marks, up a tenth of a pfennig from the close Tuesday.
Analysts said the economic figures, which revealed average earnings growth falling back although underlying inflation had picked up slightly, showed Britain was set for a period of sustained non-inflationary growth.
The underlying rate of inflation, excluding mortgage repayments, rose 0.5 percent in May from the previous month, bringing the 12-month growth rate to 2.5 percent from 2.3 percent in April.
Average earnings growth fell to 3.75 percent in April from 4 percent in March.
The government also said unemployment fell by 20,100 to 2.66 million people, or 9.4 percent of the work force.
The mark remained firm against the dollar and European currencies, continuing to benefit from the better than expected result for Chancellor Helmut Kohl's ruling Christian Democratic Union in the European parliamentary elections.
The mark gained a fifth of a pfennig against the dollar to 1.6421, while against the franc the German currency was unchanged at 3.4120.
Earlier yesterday, the Bundesbank shaved its marginal securities repurchase rate to 5.05 percent at its weekly money market operations from 5.10 percent.
In Frankfurt, the dollar opened at 1.6470 German marks, up from 1.6450 at the previous close.
In Zurich, the dollar opened at 1.3855 Swiss francs, bown from 1.3870 at the previous close.
In London, the pound opened at US$1.5185, unchanged from the previous close.
In Brussels, the dollar opened at 33.82 Belgian francs, down from the previous close at 33.88.
In Paris, the dollar opened at 5.6445 French francs, up from 5.6095 at the previous close.
Official currency exchange markets remained closed in Italy, but in unofficial dealing the dollar opened at around 1,604.40 lira, up from the previous Bank of Italy indicative quotation of 1,595.05 lira.
In Tokyo, the dollar closed at 103.03 Japanese yen, up from the previous close at 102.88.
In Singapore, the dollar closed at S$1.5317, up from S$1.5308 at the previous close.
In Hong Kong, the dollar closed at HK$7.7300, down from HK$7.7395 at the previous close.
Gold opened in Zurich at $383.70, down from $384.00 at the previous close. In London, gold opened at $384.00, unchanged from the previous close. Gold closed at $383.65 in Hong Kong, up from $383.55 at the previous close.
Silver opened in Zurich at $5.38, down from the previous close at $5.41, while in London it started trading at $5.37, down from the previous close at $5.42.