October 21, 2003	Tuesday	Sha'aban 24, 1424

LONDON, Oct 20: The dollar received a somewhat fleeting boost on Monday from reported remarks by US Treasury Secretary John Snow, who insisted that Washington has not been trying to talk down the value of the US currency.

But the dollar struggled to cling to its gains, sparked by an interview by Snow with the British newspaper The Times, which also quoted him as saying that US interest rates were set to rise as an economic recovery gathered pace.

The single European currency stood at $1.1687 against 1.1681 late on Friday in New York.

The dollar edged up to 109.54 yen from 109.33 on Friday.

The main focus was on the comments by Snow, who said that some commentators, though not markets themselves, had misunderstood his remarks that the G7 rich nations’ call last month for more flexible exchange rates was “a milestone”.

This had not been a hint that the United States wanted to see a weaker dollar, he said, according to The Times.

Snow also said that Washington would welcome an increase of interest rates because, far from being a dampener on the economy, it would underline the strength of US growth prospects.

The United States’ central bank, the Federal Reserve, has independent responsibility for monetary policy.

Analysts also noted that the US unit had enjoyed only a fleeting fillip from Snow’s remarks.

Snow’s comments might be viewed more as an attempt to bring calm to the market rather than an attempt to boost the dollar, he added.

The euro was changing hands at $1.1687 from 1.1681 late on Friday in New York, 128.04 yen (127.74), 0.6960 pounds (0.6958) and 1.5511 Swiss francs (1.5507).

The dollar was being quoted at 109.54 yen (109.33) and 1.3270 Swiss francs (1.3274).

The pound was at $1.6787 (1.6784), 183.88 yen (183.49) and 2.2283 Swiss francs (2.2285).

On the London Bullion Market, the price of an ounce of gold stood at $371.55 against 370.50 on Friday afternoon.—AFP