November 28, 2002	Thursday	Ramazan 22, 1423

LONDON, Nov 27: The dollar was steady against other leading currencies on Wednesday following recent gains, as the market awaited the release of a batch of US economic statistics.

The single European currency stood at $0.9920 from 0.9919 late on Tuesday in New York.

The dollar traded at 121.80 yen against 121.57 late on Tuesday.

HSBC economist Steve Pearson said that although the dollar had held up well in the face of Tuesday’s sharp drop in US equity prices, the release of US data later Wednesday would provide the currency with “a series of stern tests”.

He said some “very impressive data” would arguably be needed for the dollar to push higher.

CIBC World Markets economist Audrey Childe-Freeman likewise said traders were slightly nervous about holding the dollar ahead of a closely watched report on regional manufacturing business activity due to be released later by the Chicago Purchasing Management Association.

But ABN Amro analyst Rob Hayward added that although weaker US equities had prevented the dollar from breaching technical resistance at 0.9890 dollars to the euro, the risk was that the US unit would eventually move higher.

We still see downside (for the euro), Hayward said, noting that speculators remained heavily overweight in the single European currency.

Meanwhile, the British pound remained under pressure ahead of chancellor Gordon Brown’s mini-Budget statement.

Analysts said the likelihood that Brown would lower his forecasts for British economic growth and raise his estimates of public borrowing continued to weigh on the pound.

Commerzbank analyst Kamal Sharma said unrest among a number of leading trade unions was further depressing sentiment towards the British currency.

Part of this (the pound’s weakness) is down to generalised dollar strength.

But the risk the industrial action by firefighters and teachers in London may spread is also weighing on sterling, Sharma said.

About 1,000 London schools were closed Tuesday as teachers marched through the city to demand higher cost-of-living allowances from Prime Minister Tony Blair’s government, which is already facing a series of strikes by firefighters.

The euro was changing hands at 0.9920 dollars from 0.9919 late on Tuesday in New York, 120.83 yen (120.80), 0.6399 pounds (0.6400) and 1.4747 Swiss francs (1.4727).

The dollar was being quoted at 121.80 yen (121.57) and 1.4866 Swiss francs (1.4821).

The pound was at 1.5502 dollars (1.5514), 188.80 yen (188.65) and 2.3044 Swiss francs (2.3000).

On the London Bullion Market, the price of an ounce of gold rose to $318.45 from 318.15 late on Tuesday. —AFP