April 03, 2007	Tuesday	Rabi-ul-Awwal 14, 1428

LONDON, April 2: The euro rose slightly against the dollar on Monday as traders absorbed a weaker-than-expected survey on the US manufacturing sector. Investors were cautious ahead of other economic indicators later this week amid uncertainty about the prospects for the US economy and growing tension between Britain and Iran.

The euro rose to $1.3375 in late European trading, from $1.3356 late in New York on Friday.

The dollar fell to 117.66 yen in European trade, compared with 117.82 late on Friday.

The Institute of Supply Management said Monday that its index of national industrial activity dipped to 50.9 per cent from 52.3 per cent in February.

Paul Bednarczyk, currency strategist at 4CAST, added: “There wasn’t much of a response from the dollar as the data was fairly mixed with the fall in employment being offset by the rise in prices.”

”Traders are also being fairly cautious this week and closing positions as US payrolls data is out on Friday when financial markets are closed,” he added.

News of US plans to impose sanctions on some Chinese imports also dented the dollar.

“The dollar remains prone to further selling in the wake of the China duty announcement and this afternoon’s ISM manufacturing is unlikely to turn dollar sentiment ahead of the key US employment report on Friday,” said Derek Halpenny, senior currency economist at The Bank of Tokyo Mitsubishi.

The Japanese currency came under pressure overnight after the Bank of Japan said business confidence fell back from a two-year high in the three months to March, marking the first decline for a year.—AFP