Dollar trade steady in Europe, up in Asia

LONDON (UPI): The U.S. dollar was trading steadily in tight ranges across Europe yesterday morning, still making modest gains against the German mark after supportive remarks by a top German central banker.

In London, the U.S. currency was quoted at 1.4897 marks, up on the previous close of 1.4866, while in Frankfurt, the dollar opened at 1.4885 marks, up from the previous 1.4878.

Against the Japanese yen, the greenback traded at 108.15 yen in London, up from the previous finish of 107.89.

Dealers said the dollar was boosted against the German currency by Bundesbank chief economist Otmar Issing saying that the powerful German central bank was not seeking mark appreciation in the near term.

Meanwhile, the British pound was higher as a result of encouraging inflation data. Although the retail price index showed a rise of 2.2 percent in July compared to 2.1 percent in June, this was due to a rise in housing costs, and did not reflect the fall in retail prices for food, clothing and other goods.

Boosted by the news, sterling was being quoted in London at 2.3089 German marks, up from its previous finish of 2.3032 marks, and against the dollar at US$1.5503, up a little from the previous day's close of $1.5493.

In Zurich, the dollar opened at 1.2100 Swiss francs, up from the previous close of 1.2050.

Elsewhere in Europe, French, Belgian, Italian, Spanish and Greek financial markets were closed for the Ascension Day public holiday.

In Tokyo, the dollar closed higher at 108.10 Japanese yen, up from the previous close of 107.79.

In Singapore, the dollar closed at S$1.4126, up from the previous close at 1.4117.

In Hong Kong, the dollar closed at HK$7.7340, up a fraction from 7.7338.

Gold opened at US$386.50 an ounce in Zurich, down from the previous close at $386.75, while in London it started unchanged at $387.00. In Hong Kong gold closed at US$386.75, up from $386.45.

Silver opened unchanged in both Zurich and London at US$5.05 and $5.06 respectively.