Pound gains further on foreign reserves data

LONDON (UPI): The pound gained ground against the German mark and the dollar yesterday, supported by the release of March official foreign currency data that showed a smaller than expected drop.

The British currency, stronger at the opening for technical reasons, was further boosted after the Treasury said official reserves fell by an underlying US$45 million to $43.5 billion in March.

The relatively small drop was a sign that the Bank of England had not been very active in supporting the pound despite strong pressure on the currency in the past few weeks, analysts said.

The pound was trading at $1.47 and at 2.5158 marks from respective London closes at $1.4632 and 2.4987 marks Tuesday.

The dollar was establishing firm support above the 1.70 marks level, trading at 1.7120 marks by mid-morning, compared with Tuesday's London close of 1.7071.

Analysts said Tuesday's strong rally in U.S. Treasury bonds was adding support to the dollar.

The greenback also made gains against the yen, rising to 104.50 yen from a Previous London close at 103.75, reflecting primarily the strong dollar-mark cross movement.

In Frankfurt, the dollar opened at 1.7123, up from the previous close of 1.7073.

In Zurich, the dollar opened at 1.4450 Swiss francs, up from the previous close at 1.4325.

In London, the pound opened at $1.4720, up from the previous close of $1.4632.

In Brussels, the dollar opened at 35.25 Belgian francs, up from the previous close at 35.01.

In Paris, the dollar opened at 5.8517 French francs, up from the previous close at 5.8475.

In Milan, in unofficial dealing, the dollar opened at 1,657.50 lira, up from the previous close of 1,631.67.

Earlier in Tokyo, the dollar closed at 104.34 yen, up from 102.95 at the previous close.

The dollar closed in Singapore at S$1.5705, up from the previous close at S$1.5673.

In Hong Kong, the dollar closed at HK$7.7270, while gold closed US$385.25. The Hong Kong currency and gold markets were closed Tuesday for the Ching Ming Festival holiday.

In Zurich, gold opened at $385.50, down from $386.50 at the previous close, while in London it opened at $385.00, down from the previous close at $386.25.

Silver opened in Zurich at $5.57, down from the previous close at $5.61, and in London it opened at $5.56, down from the previous close at $5.61.