950804

Dollar climed to

91 yen, stocks mixed

in europe

LONDON: The dollar climbed to 91 yen and European stock markets were mixed in quiet Friday trading ahead of key U.S. jobs data for July.

The dollar moved half a yen higher in early European business on overnight investment-fund buying. Dealings were subdued ahead of the the U.S. labour report, likely to shed more light on the strength of the economy and direction of U.S. interest rates after the recent small cut.

A package of deregulatory steps announced by Japan this week and joint U.S.-Japan intervention to support the dollar have put a floor under the dollar/yen rate. But the U.S. currency has had difficulty rising against other currencies, notably the mark, though it moved up half a pfennig to 1.3960 marks on Friday.

A strong U.S. non-farm payrolls report could hurt the dollar if it triggers a sell-off in the Treasury bond market, while a weak figure could also be negative if the dollar reacts to the possibility of another U.S. credit easing, analysts said.

The employment report was due at 1230 GMT and a Reuter poll of economists forecast the unemployment rate to have risen to 5.7 percent in July from June's 5.6 percent. Non-farm payrolls were expected to have increased 111,000, after June's 215,000.

London share prices opened with modest gains, showing a firmer trend after an encouraging 11-point rise on the Dow in New York. The FTSE-100 advanced 0.43 percent but many dealers said the scope for further gains looked limited, although the index could make a fresh assault on its record high soon.

Paris's CAC-40 advanced 0.48 percent but the Frankfurt DAX slid 0.22 percent.

The dollar was quoted at 1.3968 marks and 91.10 yen compared with late European levels of 1.3897 and 90.50 on Thursday.

The French franc eased slightly after roaring ahead on Thursday to its highest level in seven months against the mark in the wake of a rate cut by the Bank of France. The mark was quoted at 3.4455 francs compared with late Thursday's 3.4430.

By 1030 GMT the Financial Times-Stock Exchange index of 100 leading British shares had risen 14.8 points to 3,490.4.

In Paris, the CAC-40 share index gained 9.60 to 1,960.43.

The 30-share DAX in Frankfurt was down 2.88 at 2,237.84.

PRECIOUS METALS:

Gold was fixed at $384.35 an ounce, the highest of the week and up 35 cents on the previous day. Firmness from New York on Thursday was sustained in Far East trading and the tone was more bullish, dealers said. -Reuter