Dollar trades in narrow ranges

LONDON (UPI): The U.S. dollar traded in narrow ranges against European currencies yesterday morning as dealers awaited the outcome of a Bundesbank council meeting that was expected to reduce the country's repo rate.

In London, the U.S. currency was quoted at 1.4872 German marks, down on the previous finish of 1.4890. The dollar traded at 107.97 Japanese yen from the previous finish of 108.23.

The dollar was trading near the days lows at mid-morning as dealers waited for the results of the Bundesbank Central Council meeting. The German central bank is expected to cut its fixed repo rate -- currently at 3.30 percent -- by at least 10 basis points and possibly 15, dealers said.

Dealers said any cut in the rates would help to make the foreign currency markets slightly more stable. If the Bundesbank does cut its rates, the other European central banks are likely to follow suit to avoid exposure to any dollar-mark move.

The British pound was up against the dollar but lower against the mark. Sterling was being quoted at 2.3114 German marks from its previous finish of 2.3128 marks. The pound opened at US$1.5541, up from the previous close of $1.5529.

In Frankfurt, the dollar opened at 1.4897 German marks, down from the previous close of 1.4904.

In Zurich, the dollar opened at 1.2120 Swiss francs, up from the previous close of 1.2115.

In Paris, the dollar opened at 5.0427 French francs, up from the previous close of 5.0340.

In Brussels, the dollar opened at 30.65 Belgian francs, up from the previous close of 30.64.

In Milan, the dollar opened at 1,518 Italian lira, up from the previous close of 1,512.15.

In Tokyo, the dollar closed at 108.08 Japanese yen, up from the previous close of 107.79.

In Singapore, the dollar closed at S$1.4153, down from the previous close at 1.4167.

In Hong Kong, the dollar closed at HK$7.7338, down from the previous close of 7.7351.

Gold opened at US$385.30 an ounce in Zurich, up from the previous close at $384.85, while in London it started trading at $384.50, down from the previous close of $384.75. In Hong Kong, gold closed at US$385.15, up from the previous close at $384.65.

Silver opened at $5 in Zurich, up from the previous close at $4.99, while in London it opened at $5.01, unchanged from the previous close.