April 5, 2003	Saturday	Safar 2, 1424

LONDON, April 4: The dollar crept higher on Friday as the latest advances by US forces battling for control of Baghdad airport helped to cushion the impact of recent weak US economic data.

The single European currency dipped to $1.0722 in morning European trading from 1.0754 late on Thursday in New York.

The dollar edged up to 120.04 yen from 119.44 on Thursday.

The US currency continued its advance as US forces took near total control of Baghdad airport after heavy artillery and gunfire with Iraqi soldiers.

This leaves the dollar well protected even against a weaker-than-expected US jobless report and the balance of risk in the dollar remains on the upside in the near term, said WestLB economist Michael Klawitter.

But the dollar’s celebrations were marred by renewed concerns that the US economic locamotive is running low on steam, a worry expected to be heightened by March US labour market figures due to be released later Friday.

Commerzbank currency strategist Kamal Sharma said that the report would round off a bad week for US economic data releases, which has seen manufacturing and non-manufacturing confidence post large declines.

Even though the dollar continues to be driven by short-term ‘war noise’, the deterioration in the economic numbers underlies our medium-term view on the dollar.

Concerns about the fragility of Japan’s economic recovery were also underlined by a report that household spending in the country had fallen by 2.4 percent on a seasonally adjusted basis in February, said Bank of Tokyo-Mitsubishi economist Paul Chertkow.

There is increasing speculation that the Bank of Japan will decide at its meeting next Monday and Tuesday to ease its monetary stance further, he said.

Many dealers in Tokyo expect the gathering, the first regular monetary policy meeting involving new Bank of Japan governor Toshihiko Fukui, to produce an expansion of the range of assets the central bank buys.

The euro was changing hands at 1.0722 dollars from 1.0754 late on Thursday in New York, 128.74 yen (128.49), 0.6851 pounds (0.6838) and 1.4850 Swiss francs (1.4822).

The dollar was being quoted at 120.04 yen (119.44) and 1.3848 Swiss francs (1.3785).

The pound was at $1.5657 (1.5715), 187.90 yen (187.70) and 2.1683 Swiss francs (2.1663).

On the London Bullion Market, the price of an ounce of gold slipped to $323.35 from 323.70 on Thursday afternoon. —AFP