May 14, 2003	Wednesday	Rabi-ul-Awwal 11, 1424

LONDON, May 13: The euro was wavering around the $1.15 mark on Tuesday in a volatile market as traders absorbed fresh comments from US Treasury Secretary John Snow and nervously awaited a raft of US economic data.

In early European trading the euro was at $1.1509 against 1.1541 dollars late on Monday in New York, having breached the $1.16 mark earlier that day for the first time since January 1999.

The dollar also rose slightly against the Japanese currency, to 117.17 yen from 117.00 yen late on Tuesday.

In a news agency interview conducted on Friday but not released until Tuesday, Snow reportedly said that Japan and Europe should not blame a weaker dollar for their economic woes.

He additionally questioned the effectiveness of official intervention in currency markets.

The euro’s surge on Monday had been triggered by earlier comments from Snow indicating that the US government was relaxed about the dollar’s weakness, but analysts said his new comments added little.

What he said was pretty much the same to what has already been said at the weekend. There is not too much difference, said WestLB strategist Michael Klawitter.

There had been “very little impact” made by the comments, although the prevailing dollar-negative view remained unchanged, Klawitter added.

The US currency’s recent precipitous fall has led to speculation that Washington might be tacitly abandoning its strong dollar policy, perhaps even in an attempt to boost domestic growth ahead of the November 2004 presidential election.

The comments only reiterated the views already expressed by the US Treasury department on many occasions in the past that it opposes foreign exchange manipulation and that the value of a country’s currency is best left to an open competitive market, he said.

Either way, for now the euro’s rise appeared to have levelled off, added WestLB’s Klawitter.

The general perception is that this move has been a bit too fast and a bit too far in the short-term, he said.

Of much more importance was a series of US economic figures due over the week, including retail sales, unemployment and industrial production, he added.

No one really wants to take new positions before the US data later in the week, he said.

The euro was changing hands at 1.1509 dollars from 1.1541 late on Monday in New York, 134.82 yen (135.03), 0.7155 pounds (0.7171) and 1.5134 Swiss francs (1.5111).

The dollar was being quoted at 117.17 yen (117.00) and 1.3151 Swiss francs (1.3094).

The pound was at $1.6092 (1.6091), 188.51 yen (188.26) and 2.1161 Swiss francs (2.1070).

On the London Bullion Market, the price of an ounce of gold stood at $350.35 from 351.10 late on Tuesday. —AFP