U.S. dollar doldrums across Europe

LONDON (UPI): The U.S. dollar was trading lower across Europe yesterday morning, following comments by the chairman of the Federal Reserve Board, Alan Greenspan, about U.S. interest rates.

In London, the U.S. currency was quoted at 1.5403 German marks, up on the previous finish of US$1.5370. The dollar traded at 112.11 Japanese yen from the previous finish of 112.10.

Dealers said that global bond markets have taken fright at Greenspan's suggestion that "the future course" of U.S. inflation "remains uncertain".

His assertion that "central bankers need not be concerned if a collapsing financial asset bubble does not threaten to impair the real economy," was expected to lead to U.S. equities falling back sharply later today.

While the latter comment from Greenspan, which suggested he views U.S. asset markets as overvalued, is no different to what many analysts have been saying for some time, "the fact it came from the Fed chairman has spooked the markets," analysts said.

The increased prospect of a major sell-off in global asset prices hit the dollar and at times of increased uncertainty, international investors tend to gravitate towards their domestic markets, analysts said.

It was expected that the dollar will suffer, particularly relative to the yen and Swiss franc as, while the U.S. economy is the main importer of capital, the Japanese and Swiss are the main exporters.

The dollar has so far fallen furthest against the mark in the wake of Greenspan's comments but analysts did not expect this situation to persist.

Sterling was being quoted at 2.5224 German marks from its previous finish of 2.5241 marks.

In Frankfurt, the dollar opened at 1.5385 German marks, down from the previous close of 1.5607.

In Zurich, the dollar opened at 1.3030 Swiss francs, down from the previous close of 1.3185.

In London, the pound opened at $1.6257, down from the previous close of $1.6270.

In Paris, the dollar opened at 5.2060 French francs, down from the previous close of 5.2637.

In Brussels, the dollar opened at 31.72 Belgian francs, down from the previous close of 32.08.

In Milan, the dollar opened at 1,520 Italian lira, down from the previous close of 1,535.55.

In Tokyo, the dollar closed at 112.08 Japanese yen, down from the previous close of 112.42.

In Singapore, the dollar closed at S$1.4033 Singapore, up from the previous close at 1.4019.

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

Gold opened at $372.50 an ounce in Zurich, up from the previous close at $369.45, while in London it started trading at $369.00, up from the previous close of $368.50. Gold closed at US$374.35 in Hong Kong, up from the previous close at $368.95.

Silver opened at $4.90 in Zurich, up from the previous close at $4.82, while in London it opened at d4.77, up from the previous close at $4.76.