September 30, 2003	Tuesday	Sha’aban 3, 1424

LONDON, Sept 29: The dollar rose against most major currencies on Monday ahead of a raft of US economic data later in the week, although it slipped back further on the yen, prompting speculation about imminent Japanese intervention.

The single European currency stood at $1.1411 in early European deals against 1.1463 late on Friday in New York.

The dollar was being traded at 111.50 yen compared with 111.66 on Friday.

Overall, the dollar has stabilised after the tumult of the previous week, when a statement by the G7 industrialised nations’ group on improving currency flexibility sent the US unit tumbling.

After the post-G7 reflection of last week, it’s time at last to consider the fresh information on the US economy that awaits us in the week ahead, said Commerzbank analyst Nick Parsons.

Data on consumer confidence, purchasing, manufacturing and payrolls should all give us a better sense of how the third quarter (of 2003) ended compared to investors’ heady expectations back in July and early August, he said.

However on Wednesday, the Bank of Japan’s quarterly Tankan economic survey was also expected to show economic recovery, which could push the yen ever higher, analysts said.

This could test the resolve of Japanese financial authorities, which in the past have intervened in the currency markets to rein in the yen’s strength and thus preserve economic competitiveness.

We doubt this is the case and believe the Japanese authorities stand ready to intervene at levels around 110 (yen per dollar).

The euro was changing hands at $1.1411 from 1.1463 late on Friday in New York, 127.13 yen (128.00), 0.6929 pounds (0.6909) and 1.5398 Swiss francs (1.5408).

The dollar was being quoted at 111.50 yen (111.66) and 1.3504 Swiss francs (1.3439).

The pound was at $1.6467 (1.6585), 183.59 yen (185.21) and 2.2239 Swiss francs (2.2294).

On the London Bullion Market, the price of an ounce of gold edged back to $379.85 from 382.70 on Friday afternoon. —AFP