950828

Dollar stabilized

NEW YORK: The dollar stabilized at slightly higher levels by U.S. midday after an earlier slide on fallout from the French finance minister's resignation.

Dealers said they expect further pressure on the U.S. unit from a strengthening mark.

"The mark has been gaining quite a bit in the last 24 hours. That is definitely weakening the dollar," said Steven Jury, chief dealer at UBS. "There is a good chance it could continue to be pressured."

At midday, the dollar stood at 1.4618/23 marks, up from 1.4600 at the open. It was at 96.55/60 yen versus 96.18/21.

The mark remained well bid against European crosses and against the yen which kept dollar/yen supported.

Dealers said they see strong support for the dollar at 1.4575 marks and a break below could spark a more serious drop and perhaps central bank intervention.

David Glowacki, senior trader at NBD Bank, said if the greenback breaks 1.4550 marks, "we will see some real weakness for the dollar.

he said he expects the dollar to stay weak in the near-term but still views this move as part of a consolidation.

"To me, it is probably the end of the dollar's correction to the top side and more of a move back to its lower trend," Smith said.

At midday, the dollar stood at 1.2040/50 Swiss francs up from 1.2025/35 at the open. It was down to $1.3400/10 Canadian from $1.3451/56 at the open. Sterling fell to $1.5520/30 versus $1.5540/50 at the open.-Reuter