Dollar up in Europe, franc look vulnerable

LONDON (UPI): The U.S. dollar traded higher across Europe yesterday morning, particularly against the French franc, in the wake of Bank of France comments suggesting it was seeking a weaker franc.

In London, the U.S. currency was quoted at 1.5321 German marks, up on the previous finish of 1.5279. Against the Japanese yen, the greenback changed hands at 113.68 yen, up from the previous finish of 113.33.

Foreign exchange analysts said the dollar's recent gains against the yen and Gerard's comments were pushing it higher against its European counterparts.

One dealer also said the franc was looking "very vulnerable" because of the French truck drivers' strike which has paralyzed roads in France and blocked most cross-Channel trade.

The British pound reaped the benefit of expectations of further interest rate rises after pledges in Tuesday's national budget to keep inflation tightly under control.

Sterling was opened in London at d1.6775, up modestly from the previous finish of d1.6767, and was quoted against the German mark at 2.5706 marks, up from the previous 2.5618 marks.

In Frankfurt, the dollar opened at 1.5275 German marks, up from the previous close of 1.5252.

In Zurich, the dollar opened at 1.2975 Swiss francs, up from the previous close of 1.2905.

In Brussels, the dollar opened at 31.58 Belgian francs, up from 31.43.

In Milan, the dollar opened at 1,512.75 Italian lira, down a touch from the previous close of 1,13.34.

In Tokyo, the dollar closed at 113.44 Japanese yen, up from the previous close of 113.07.

In Singapore, the dollar closed at S$1.4015, virtually unchanged from the previous close at 1.4013.

In Hong Kong, the dollar closed unchanged at HK$7.7325.

Gold opened at US$372.65 an ounce in Zurich, down from the previous close at $373.00, while in London it started unchanged at $373.00, but later fixed at the lower rate of $372.20. In Hong Kong, gold closed at $372.25, down from $374.20.

Silver opened at d4.74 in Zurich, up from d4.73, while in London it opened unchanged at d4.73.