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Dollar drifts lower

NEW YORK: The dollar drifted lower at midday in lackluster trade following Wednesday's intense rally replete with central bank intervention.

"The market is taking a breather from the frenzy of yesterday," said Susan Stearns, director at bank of Montreal. "What we have been seeing is position squaring, a little bit of profit taking."

At midday, the dollar stood at 1.3890/00 marks from 1.3932/37 marks at the open. It also slipped to 90.35/45 yen from the opening at 90.45/50 yen.

"The market wants to hang its head on the real possibility of a (German) rate cut," Stearns said.

The dollar stood at 1.1488/98 Swiss francs at midday, down from the opening at 1.1530/40 Swiss. It edged up to Canadian $1.3584/89 from C$1.3580/85.

Sterling was at $1.6065/75 from $1.6033/40.-Reuter