Dollar Lower in Thin Holiday Trading

The dollar was narrowly lower against most major currencies Monday in trading thinned by national holidays in the United States and much of Europe.

The U.S. currency continued its downward trend from overnight in Tokyo, where the absence of normally active buyers from abroad kept the market’s momentum at a minimum.

All U.S. financial markets were closed Monday for Memorial Day. All major European markets also were closed, with only Italy, Spain, Greece and Ireland open for business.

The market closures dampened activity among Asian stock markets.

Tokyo stocks eased in thin turnover as doubts over the immediate outlook for the economy clouded the market.

“What can I tell you? There was nothing going on all day. Everybody’s just waiting for the U.S. to reopen,” said Alan Au, of PW Asia Brokerage in Hong Kong.

In Tokyo, the key Nikkei 225 average lost 98.67 points, 0.45%, to 21,699.76.

The Hong Kong market struggled higher, but on the year’s lowest turnover. The blue-chip Hang Seng Index gained 62.53 points to 11,081.69.

Brokers expected the direction of the market to remain unclear.

“A weaker tone will remain in the market for a while, with no active buyers appearing,” said Kiyoshi Kimura, general manager of the research department at Societe Generale Securities.

Some brokers were looking for direction from the quarterly financial results of major electronic companies, such as Hitachi Ltd., Toshiba Corp, Mitsubishi Electric Corp., and Fujitsu Ltd., due out on today.

In Milan, the dollar was quoted in late trading at 107.75 Japanese yen, down from 107.91 late Friday, and at 1.5420 German marks, down from 1.5435.

At late afternoon in New York, the dollar was worth 107.76 yen and 1.5422 marks.

Other late dollar rates in Europe, compared to late Friday: 1.2649 Swiss francs, down from 1.2671; 5.2145 French francs, down from 5.2209; 1,558 Italian lire, down from 1,561; 1.3733 Canadian dollars, down from 1.3746.

The British pound was quoted at $1.5140, up from $1.5120 late Friday. In New York, the pound fetched $1.5137 in New York.

Other dollar rates in New York included: 1.2650 Swiss francs, 5.2150 French francs, 1,556 lire and 1.3735 Canadian dollars.

The dollar was marginally lower in quiet late-afternoon trading in Hong Kong. It stood at 107.75 yen and 1.5420 marks, after opening at 107.82 yen and 1.5434 marks.