Dollar trades tightly in Europe

LONDON (UPI): The U.S. dollar was confined to narrow trading ranges across Europe yesterday morning ahead of the afternoon's release of U.S. retail sales and consumer prices figures.

In London, the U.S. currency was quoted at 1.5445 German marks, up on the previous close of 1.5385, while against the Japanese yen it changed hands at 113.25 yen, up from the previous finish of 112.81.

Robin Aspinall, economist at National Australia Bank in London, said all eyes were on the U.S data for November.

"What the market wants to know is: Is the U.S. economy still strong and will we see inflationary pressures or are we finally seeing signs of slowing, which will see expectations for an interest rate hike recede," Aspinall said.

The British pound opened in London at US$1.6517, down from the previous close of $1.6583, and was quoted at 2.5497 German marks, down a little from its previous finish of 2.5513 marks.

Dealers said sterling was a little helped by the announcement of November inflation figures which were in line with forecasts having risen 0.1 percent month-on-month and 2.7 percent year-on- year.

But there was also some caution as markets awaited a decision on domestic interest rates after Wednesday's monetary policy meeting between the Treasury and the Bank of England.

The dollar-mark rate in Frankfurt was unobtainable due to technical problems.

In Zurich, the dollar opened at 1.3150 Swiss francs, up from the previous close of 1.3130.

In Paris, the dollar opened at 5.2135 French francs, down from the previous close of 5.2230.

In Brussels, the dollar opened at 31.82 Belgian francs, up from 31.80.

In Milan, the dollar opened at 1,525.50 Italian lira, down a little from the previous close of 1,525.84.

In Tokyo, the dollar closed at 112.89 Japanese yen, up a touch from the previous close of 112.87.

In Singapore, the dollar closed at S$1.3995, up just slightly from the previous close at $1.3994.

In Hong Kong, the dollar closed at HK$7.7355, up from the previous close of $7.7330.

Gold opened at $368.75 an ounce in Zurich, up from the previous close at $368.25; in London it started at $369.00, up from the previous $368.25.

It closed at $368.95 in Hong Kong, down from the previous close at $369.05.

Silver opened at $4.85 in Zurich, up from $4.78, while in London it opened at $4.83, down from the previous close at $4.87.