LONDON, Dec 9: The dollar lower against the euro and yen on Monday as dealers awaited anxiously for news of US President George W. Bush’s new economic team amid forecasts of a major stimulus package for the world’s biggest economy.

The single European currency climbed to $1.0107 from 1.0098 late on Friday in New York.

The dollar also fell to 122.63 yen against 123.49 on Friday.

Dealers were mulling reports that the chairman of rail freight network operator CSX Corp., John Snow, will be named as the new treasury secretary to replace Paul O’Neill, whose sacking Friday shocked financial markets and left the so-called US “strong-dollar policy” in doubt.

Snow, a 63-year-old former transportation department official, has accepted and will be nominated if he clears the final stages of the White House’s legal and financial review, sources told the Washington Post.

Former Goldman Sachs chairman Steven Friedman has been tipped as the new White House economic advisor to succeed Lawrence Lindsey who was abruptly asked to tender his resignation Friday.

Derek Halpenny, economist at Bank of Tokyo-Mitsubishi, said that the report of Snow’s imminent appointment had been met with a muted response in the foreign exchange market.

This was partly because very little is known about him and partly because the market had been expecting a financial market heavyweight, he said.

However, with the Bush administration likely to pursue short-term economic policies that ensure a more robust period of economic activity as the next presidential election approaches in 2004, there is bound to be continued speculation that privately, the Bush administration would be happy to see the dollar continue weakening, he wrote in a research note.

Steve Pearson, currency strategist at HBOS bank, said that the direction of the dollar would also be influenced this week by US economic data due for release.

Dealers are on tenterhooks ahead of US retail sales and current account figures slated for release on Thursday and a survey of consumer confidence by the University of Michigan on Friday.

An interest rate decision by the US Federal Reserve on Tuesday is expected to receive a muted response in the currency market, with policymakers widely expected to hold rates at a 41-year low of 1.25 per cent.

The euro was changing hands at $1.0107 from 1.0098 late on Friday in New York, 123.93 yen (123.49), 0.6407 pounds (0.6402) and 1.4762 Swiss francs (1.4718).

The dollar was being quoted at 122.63 yen (123.49) and 1.4585 Swiss francs (1.4572).

The pound was at $1.5774 (1.5764), 193.41 yen (194.74) and 2.3003 Swiss francs (2.2980).

On the London Bullion Market, the price of an ounce of gold rose to $326.25 from 325.75 late on Friday. —AFP