LONDON, Sept 11: The dollar firmed in subdued late trade on Wednesday as market concern over the possibility of fresh terrorist acts on the anniversary of September 11 attacks began to fade, dealers said.
The single European currency stood at 0.9729 dollars against 0.9750 late on Tuesday.
The dollar traded at 120.60 yen from 119.89 on Tuesday.
There was little on the data front to encourage activity and even less inclination to take on positions, they added.
A heightened alert status in the United States added to market paralysis.
“There has been nothing specific to push the euro lower but it seems to be in line with the general dollar story so far,” said David Mann, economist at Standard Chartered.
Despite its dip against the dollar, the euro held up well elsewhere, however.
The dollar’s ascent may be thwarted when US current account deficit figures are released on Thursday. Retail sales data on Friday could make it even worse, Mann said.
The current account deficit is expected to widen to a new record of $125.5 billion in the second quarter from $112.5 billion in the first quarter because of the rising merchandise trade gap and negative investment flows.
Several key events are also pending. For one, US President George W. Bush’s speech to the United Nations on Thursday will be closely watched, especially as the campaign for war on Iraq cranks up.
On the same day, US Federal Reserve chairman Alan Greenspan is to testify before the US Congress.
But while the dollar could weaken on any of the news, losses will be kept in check by concerns over European and Japanese growth, according to Divyang Shah at IDEAglobal.com.
The pound did well, riding on the back of a relatively strong domestic economy.
The euro was changing hands at 0.9729 dollars against 0.9756 late on Tuesday in New York, 117.33 yen (116.98), 0.6277 pounds (0.6271) and 1.4653 Swiss francs (1.4595).
The dollar was being quoted at 120.60 yen (119.89) and 1.5062 Swiss francs (1.4957).
The pound was at 1.5501 dollars (1.5550), 186.94 yen (186.47) and 2.3346 Swiss francs (2.3265).
On the London bullion market, the price of an ounce of gold eased to $315.50 from $319.10 late on Tuesday.—AFP