950818

Dollar depicts downturn

NEW YORK: The dollar slipped at the US midday, as dealers squared their positions weekend and took profits on the greenback's major upward movement since Monday.

Dealers said they expected this consolidation after concerted central bank intervention propelled the dollar to a higher range on Tuesday.

At midday, the dollar traded at 1.4725/30 marks, down from 1.4770/75 marks at the open. It was also at 96.90/95 yen from 97.40/50 yen.

The potential for central bank intervention kept dealers on edge, careful against pushing the dollar too far.

Despite the consolidative mood, dealers said the dollar would soon move toward 100 yen and 1.50 marks.

Next Tuesday, the Federal Reserve's policy making board will meet to determine US interest rates, but most economists expected the fed to take no action.

In other midday trade, the dollar stood at 1.2220/30 Swiss francs, slipping slightly from 1.2250/60 Swiss francs at the open.

The dollar traded at Canadian $1.3588/93, from $1.3576/81 at the open, while sterling changed hands at $1.5445/55, from $1.5405/15.-Reuter