LONDON, April 11: The dollar edged upwards on Friday against other major currencies but dealers remained watchful for both the latest news from Iraq and potentially significant economic data due in the United States.
The single European currency weakened slightly to $1.0765 from 1.0785 late on Thursday in New York.
The dollar rose to 119.93 yen from 119.62 on Thursday.
Any victory rally for the dollar in the wake of continued successes for US-led troops in Iraq was muted by concern over the potential for continued chaos in the country.
Shopkeepers in Baghdad opened fire on rampaging looters, and earlier a suicide attack in the city had killed one US solider, and in the central city of Najaf, newly-returned Shiite leader Abdul Majid al-Khoei had been assassinated on Thursday.
Additionally, with the US economy still seen as generally ailing, dealers were eagerly awaiting the latest figures for retail sales and consumer confidence, both due to be released on Friday.
The dollar remains undermined generally by concerns that economic activity in the US will remain subdued even after the completion of hostilities in Iraq, said analyst Derek Halpenny from the Bank of Tokyo-Mitsubishi.
The suicide bombing in Baghdad and the murder of a Shiite cleric in Najaf ... underlined the ongoing uncertainties that are likely to temper the rebound in consumer confidence, he said.
Market focus was gradually moving away from Iraq, but it was a lengthy process, said David Bloom, an analyst with HSBC.
The market is in a period of change. It is still affected by the war, but it is looking more towards fundamentals, which are themselves affected by events in Iraq. It’s a symbiotic relationship.
The US consumer confidence data was seen as “extremely important” in pointing the way ahead, he added.
Elsewhere, the yen’s position against the dollar had been weakened overnight in Asia by concern over North Korea’s recently bellicose stance.
In its latest apparent threat, the Stalinist state’s official media reported on Friday that North Korean supreme leader Kim Jong-Il had inspected an air force base and noted the pilots were ready to “beat back the enemy” at any time.
The euro was changing hands at $1.0765 from 1.0785 late on Thursday in New York, 129.15 yen (128.96), 0.6847 pounds (0.6855) and 1.4988 Swiss francs (1.4985).
The dollar was being quoted at 119.93 yen (119.62) and 1.3915 Swiss francs (1.3835).
The pound was at $1.5725 (1.5723), 188.63 yen (188.08) and 2.1890 Swiss francs (2.1800).
On the London Bullion Market, the spot price of an ounce of gold fell $1.50 from the previous closing price to $325.50 per ounce. —AFP
