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IMM currency futures end light trade mixed

CHICAGO: IMM currency futures closed mixed Tuesday in light trading that brokers said exaggerated small moves.

The yen, which had traded higher practically all session, broke support at $0.009550 near the close to briefly trade lower. It was supported early by selling of euros to buy yen, and was later pressured by the unwinding of those positions ahead of this week's Group of Seven finance ministers' meeting, traders said.

March euros ended lower but pared losses on the close.

Talk that an Asian central bank was interested in transferring some of its reserves to euros supported the contract.

The nearby euro had opened lower, off the overnight highs reached on widespread rumours that the December German Ifo business index to be released Thursday could be above 100, up from 98.9 in November, traders said. But the contract dipped after the Ifo Institute sad Tuesday it was still compiling data.

"I think it just continues to be a story about the dollar versus Europe being very strong, with the U.K. being a marginal exception," said Chris Sippel, senior analyst at Standard & Poor's MMS. "Even with positive fundamental news out of Germany and France, the euro still has a hard time in making any headway sustaining upticks."

The March Swiss franc took out its contract low of $0.6292 in overnight trade to post a new low of $0.6278.

At settlement, March yen was up $0.000001 at $0.009548, euros off $0.00220 at $1.01630, Swiss francs off $0.0009 at $0.6313, sterling up $0.0016 at $1.6362, Canadian dollar ahead $0.0004 at $0.6903, Australian dollars off $0.0017 at $0.6656 and Mexican pesos ahead $0.000450 at $0.104325.-Reuters