June 15, 2002	Saturday	Rabi-us-Sani 3, 1423

LONDON, June 14: The dollar was hit hard on Friday, falling half a per cent against the yen and to within a whisker of 17-month lows against the euro, as futures prices pointed to yet another day of decline in US stocks.

The dollar, already down six per cent against the euro and the yen this year as the appeal of US asset markets fades, also took a knock after a bomb exploded outside the US consulate in Karachi.

“The tone of the foreign exchange markets has been weak equities, weak dollar. And equities have been getting slammed,” said Neil Parker, market strategist at RBS Financial Markets.

The dollar fell as far as $0.9503 per euro, compared with the US close of $0.9427 and 17-month lows of $0.9506 set on Wednesday.

The dollar also declined to 124.22 yen, about half a yen above levels at which the Bank of Japan has intervened in the past few weeks to cap its currency’s export-harming strength.

Dealers said markets were testing Japan’s resolve to prevent yen strength ahead of a Group of Seven finance ministers’ meeting in Halifax, Canada. Officials have said currency moves were not on the agenda.—Reuters