LONDON, Oct 25: The dollar was stable against the euro on Friday ahead of the release of a flurry of US economic statistics later in the day, while the yen held firm after gaining ground earlier in Asian trade.

The single European currency slipped to $0.9773 from $0.9776 late on Thursday in New York.

The dollar fell to 123.83 yen from 124.40 on Thursday.

Analysts said that the US data, which include readings on durable goods orders, new and existing home sales along with consumer confidence figures from the University of Michigan, could proving testing for the US unit.

The dollar has been relatively resilient in recent weeks to US data, which have on the whole been disappointing, said Commerzbank currency analyst Kamal Sharma.

However, the next six trading days provide scope for further disappointment in the data and if equity markets react negatively and bond yields fall, this could pressure the dollar.

ABN Amro economist Tony Norfield said the dollar had been pegged back by a weak performance Thursday by Wall Street along with rumours that next week’s survey by Germany’s Ifo economic research institute would be stronger than previously anticipated.

The monthly barometer of German business sentiment is due to be published next Monday, although Norfield was himself sceptical that the rumour was well founded.

The ABN Amro analyst said while the euro could push on if there is any unexpected sign of weakness in the US data, it is likely to run into technical selling around $0.9806.

Beyond there, 0.9880 is a big level, he added.

Meanwhile the yen remained well bid after the director general of the Japanese finance ministry’s international bureau, Zembei Mizoguchi, reportedly denied earlier Friday that authorities had any intention to weaken the yen.

The numbers were broadly in line with expectations and shouldn’t have too much bearing on next month’s (British) interest rate decision, said Sharma.

The euro was changing hands at 0.9773 dollars against 0.9776 late on Thursday in New York, 121.00 yen (121.64), 0.6293 pounds (0.6289) and 1.4673 Swiss francs (1.4672).

The dollar was being quoted at 123.83 yen (124.40) and 1.5012 Swiss francs (1.5005).

The pound was at 1.5534 dollars (1.5538), 192.34 yen (193.34) and 2.3317 Swiss francs (2.3320).

On the London Bullion Market, the price of an ounce of gold stood at $312.35 against 311.75 late on Thursday. —AFP