U.S. Dollar gains ground in Europe

LONDON (UPI): The U.S. dollar was trading higher across Europe Tuesday morning, with dealers struggling to find an explanation. In London, the U.S. currency was quoted at 1.5607 German marks, down on the previous finish of 1.5670. The dollar traded at 114.13 Japanese yen from the previous finish of 114.32.

Dealers were unable to pinpoint the exact reason for the overnight in the German mark's fall, but they pointed out that thin trading will have exaggerated the overnight move.

Comments by Bundesbank chief economist Otmar Issing that the Euro is likely to be softer than the mark, heavy selling of mark/yen and the market looking for a change in German interest rate policy were the most likely explanations.

Bundesbank officials have been talking the dollar up for some time now and the market is now looking for an easing of policy.

Sterling rallied sharply on the back of the dollar move, hitting 2.6379 marks in Tokyo trading -- a level last seen in Sept 1992 shortly before sterling left the exchange rate mechanism.

Sterling was being quoted at 2.6145 German marks from its previous finish of 2.6312 marks.

In Frankfurt, the dollar opened at 1.5620 German marks, up from the previous close of 1.5411.

In Zurich, the dollar opened at 1.3265 Swiss francs, up from the previous close of 1.3135.

In London, the pound opened at US$1.6712, down from the previous close of $1.6850.

In Paris, the dollar opened at 5.2855 French francs, up from the previous close of 5.2310.

In Brussels, the dollar opened at 32.25 Belgian francs, up from the previous close of 31.78.

In Milan, the dollar opened at 1,533 Italian lira, up from the previous close of 1,516.35.

In Tokyo, the dollar closed at 114.07 Japanese yen, up from the previous close of 113.83.

In Singapore, the dollar closed at S$1.4031, up from the previous close at 1.4015.

In Hong Kong, the dollar closed at HK$7.7325, up from the previous close of 7.7320

Gold opened at US$369.25 an ounce in Zurich, down from the previous close at $371.25, while in London it started trading at $369.00, down from the previous close of $371.00.

In Hong Kong, gold closed at $369.05 from the previous close at $370.25.

Silver opened at $4.71 in Zurich, down from the previous close at $4.72, while in London it opened at $4.71, down from the previous close at $4.72.