LONDON, Sept 27: The dollar held steady against other leading currencies, a day after favourable economic data and surging US stocks prices propelled the US unit higher.

The single European currency edged up to 0.9786 dollars from 0.9763 late on Thursday in New York.

The dollar climbed to 122.41 yen from 122.22 on Thursday.

For all yesterday’s noise, not one major currency pair had a trading range more than one big figure and overnight movements have been even tighter, said Commerzbank currency strategist Nick Parsons.

Parsons added that a quiet end to the week was in prospect.

The dollar climbed against other major currencies Thursday after stocks rose on Wall Street and as the release of a batch of US economic statistics raised hopes the world’s leading economy would avoid lurching back into recession.

A firmer tone to US equities and upbeat economic data... suggest the US economy retains decent momentum and have imparted a slightly steadier feel to the dollar, said Steve Pearson, head of currency strategy at HBOS.

Mounting concerns over the parlous state of several European governments’ finances once more failed to dent the euro.

He said with the French government’s 2003 budget based on overly optimistic growth assumptions, the European Central Bank’s reaction would prove “interesting”.

EU economic and monetary affairs commissioner Pedro Solbes said Thursday he was “worried” by France’s budgetary targets.

France on Wednesday forecast a central government deficit of 44.6 billion euros for 2003.

The dollar was slightly higher against the yen as traders awaited the outcome of this weekend’s meeting of G7 finance ministers.

Earlier Japanese Finance Minister Masajuro Shiokawa pledged to inject public funds into the Japanese banking system.

Pearson said data showing overseas investors had been selling Japanese bonds and equities was helping depress the Japanese unit.

The euro was changing hands at 0.9786 dollars against 0.9763 late on Thursday in New York, 119.84 yen from 119.39, 0.6287 pounds (0.6269) and 1.4673 Swiss francs (1.4674).

The dollar was being quoted at 122.41 yen (122.22) and 1.4989 Swiss francs (1.5022).

The pound was at 1.5565 dollars (1.5577), 190.54 yen (190.42) and 2.3338 Swiss francs (2.3404).

On the London bullion market, the price of an ounce of gold edged up to $320.50 from 319.60 late on Thursday.—AFP