LONDON, Aug 20: The dollar edged up slightly against the euro on Wednesday, but its recent strong rise appeared to be flagging as economic uncertainty and terrorist bombings in Iraq and Israel took their toll.

The single European currency was at 1.1116 dollars from 1.1132 late Tuesday in New York, although this remained well above the 1.1079-dollar low seen earlier on Tuesday.

The dollar traded at 118.54 yen from 118.37 on Tuesday.

A truck bomb outside the United Nations’ Baghdad headquarters killed top envoy Sergio Vieira de Mello and at least 16 others on Tuesday, prompting the UN to order its foreign staff out of the city.

Later in the day a suicide bombing on a bus in Jerusalem killed at least 18 people.

Also, a previous mood of optimism about prospects for the US economic recovery was hit by weaker-than-expected third-quarter results announced by US computer and printing giant HP.

Disappointing results from HP, an up-tick in global terrorist activity and a surge in the yen have taken the shine off recent dollar strength, strategists from HBOS bank said in a note to clients.

The dollar had also been held up by an upsurge in confidence in the Japanese economy, reflected in gains by Tokyo’s stock market as well as a strengthening yen.

The strong Asian economic performance and signs of a cyclical rebound in Japan underpin the yen, analysts from BNP Paribas said.

The failure of the dollar to advance through key technical levels against the euro yesterday triggered a reversal in dollar appreciation that was most pronounced against the yen, he said.

The euro was changing hands at $1.1116 from 1.1132 late on Tuesday in New York, 131.75 yen (131.81), 0.6984 pounds (0.7010) and 1.5459 Swiss francs (1.5465).

The dollar was being quoted at 118.54 yen (118.37) and 1.3908 Swiss francs (1.3888).

The pound was at $1.5923 (1.5874), 188.66 yen (187.90) and 2.2140 Swiss francs (2.2044).

On the London Bullion Market, the price of an ounce of gold stood at $362.15 from 360.40.—AFP