NEW YORK, March 26: The dollar held in a narrow range on Friday in thin trading, with many forex traders on holiday and stock markets closed for the long Easter weekend. The euro was quoted at $1.2953, up slightly from 1.2942 dollars in late trading on Thursday in New York. The dollar changed hands for 106.29 yen from 106.28 yen in New York. Stock markets and most other financial markets in Europe and the United States were closed for Good Friday. US markets are to reopen on Monday while those in Europe will remain closed until Tuesday for Easter observances. New York trading rooms were deserted, said Carl Forcheski at Societe Generale. He said the euro was at a critical point, and that if it passed durably below 1.2933 it could lose further momentum.

He said that against the yen, the dollar seemed to have established support at 106 with “the major resistance at 107.29,” which was hit November 11.

On Thursday, the dollar had risen to the highest point against the euro in five weeks owing to a strong report on the US housing market. The euro fell to 1.2929 euros at one point before rebounding.

Sales of new homes in the US rose by 9.4 per cent in February from the figure for January to 1.226 million at an annual

rate, the second-highest figure ever registered, official data showed. The figures represented the biggest increase for four years.

Overall, the dollar has risen strongly against leading currencies and notably against the euro since the US Federal Reserve increased its key interest rate by a quarter of a percentage point to 2.75 per cent on Tuesday.

Comments by the Fed about inflationary pressures in the United States also strengthened sentiment in favour of the dollar by increasing speculation that the US central bank might accelerate the tightening of its monetary policy.

At Mizuho Corporate Bank in Tokyo, Tatsuro Karitani said: “Driven by widening interest rate differentials, the dollar is most likely to maintain its rise, especially against the euro and the Australian dollar.”

In late New York trade, the dollar fetched 1.2001 Swiss francs from 1.2005 Thursday.

Sterling was at $1.8685 from 1.8694 late on Thursday.—AFP