LONDON, Jan 15: The dollar edged higher on Wednesday as hopes that the US economy and stocks may be on the road to recovery received a faint boost overnight, helping offset mounting concern about the prospect of war in Iraq.

The single European currency slipped to $1.0517 from 1.0550 late on Tuesday in New York.

The dollar edged up to 118.27 yen from 118.11 on Tuesday.

Analysts said the dollar had been buoyed by solid results from US tech giant Intel, which had helped soothe concerns that Wall Street was in for another rough ride this week as a bevy of US bellweathers deliver results.

The dollar has been relatively well supported following the stronger close in US stocks and the mildly positive overall reaction to the Intel results, said ABN Amro analyst Rob Hayward.

Intel said late Tuesday fourth quarter earnings jumped 108 percent from the same period a year ago to $1.0 billion, topping Wall Street estimates, and helping ease worries about the sluggish US economy.

But markets gave only a lukewarm response after the news was tempered by the chip-maker’s waring that it would slash capital spending in 2003 to between 3.5 and $3.9 billon from 4.7 billion in 2002.

Analysts said that having raced higher in recent days, the euro had been stymied additionally by technical resistance, with the markets reluctant to test the $1.0600 level for now.

The loss of upside momentum suggests the market may attempt to take the pair (euro/dollar) lower today (Wednesday), said Hayward.

But he, like many of his peers, believes it is only a matter of time before the uptrend resumes given mounting speculation of a US-led attack on Iraq, and the persistent threat of terrorist attacks.

Among other developments, the Japanese authorities’ latest efforts to staunch the yen’s rise against the dollar met with little success.

Zenbei Mizoguchi, the official newly appointed to take charge of Japan’s forex policy, said the finance ministry maintains the right to intervene in the market to curb “excessive” movements that fail to reflect economic fundamentals.

The euro was changing hands at $1.0517 from 1.0550 late on Tuesday in New York, 124.30 yen (124.63), 0.6568 pounds (0.6572) and 1.4639 Swiss francs (1.4627).

The dollar was being quoted at 118.27 yen (118.11), and 1.3918 Swiss francs (1.3862).

The pound was at 1.6018 dollars (1.6048), 189.24 yen (189.59) and 2.2294 Swiss francs (2.2254).

On the London Bullion Market, the price of an ounce of gold stood at $352.95, down from 353.10 late on Tuesday.

TOKYO: Zembei Mizoguchi, the new man in charge of Japan’s foreign exchange policy, on Wednesday vowed to maintain the line of his predecessor and intervene in the currency markets to dampen excessive currency swings.