Dollar Little Changed in Quiet Trading
European currency markets were becalmed Monday with the U.S. and British markets closed for holidays, leaving the dollar to close little changed in quiet trading.
Share prices in Frankfurt and Zurich finished higher, but in quiet Paris trading they drifted downward.
Gold bullion ended slightly firmer at $356.65 an ounce, against Friday’s $356, but barely changed from its opening level. Crude oil prices were unchanged.
The dollar ended the trading day at 1.7045 marks and 138.25 yen, compared to the European close Friday at 1.7080 marks and 138.15 yen. The U.S. currency ended in New York Friday at 1.7035 marks and 138.27 yen.
Dealers said the U.S. currency appeared to be locked in a broad range between 1.68 and 1.72 marks. “Both the U.S. and Germany can live with a dollar around 1.70 marks,” said one trader in Frankfurt.
Bundesbank Deputy President Helmut Schlesinger said in a newspaper interview Monday that the German central bank continued to strive for a strong mark on foreign exchange markets, but dealers said his comments had little impact.
Oil prices, meanwhile, were unchanged from Friday, with the international benchmark, North Sea Brent Blend, quoted at $18.98 a barrel for June delivery.
On stock markets, the Zurich bourse closed at a high for the year, with the all-share Swiss Performance Index rising 7.9 to 1,111.1. Banks and insurers were boosted by hopes of lower interest rates.
In Frankfurt, the 30-share Dax index climbed 9.58 to 1,681.45. Some dealers linked the U.S. currency’s weakness against the mark to the rally in German shares, which climbed 4.7 last week on strong foreign demand. But in Paris, the 40-share CAC index ended 3.31 lower at 1,801.52 after drifting in subdued trading, marked by a lack of liquidity because of the London and New York holidays. “There was practically no foreign interest today,” one trader said.
Toronto stocks finished a dull session unchanged in slow trading. The TSE-300 index officially closed up 0.58 at 3,456.68.
Trading was confined to minor account-shifting as investors stayed on the sidelines for the holidays that closed U.S. and British markets, traders said.
