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Dollar softer vs mark

NEW YORK: The dollar was softer against the mark and a touch higher on the yen at midday ahead of the U.S. Treasury's auction of 10-year notes.

The 10-year auction is the second tranche of the Treasury's three-part quarterly refunding. Analysts said the dollar stands to gain if demand for the 10-year exceeds expectations, particularly as traders have not set their hopes very high after the disappointment with the three-year sale.

At midday, the dollar dipped to 1.4058/68 marks from 1.4085/95 marks at the open and late Tuesday's 1.4082/86 marks. It was narrowly higher at 91.50/55 yen from the opening at 91.45/55 yen and 91.45/50 yen late Tuesday.

Dollar/mark was pressured somewhat by mark/yen purchases, dealers said. Earlier in the day, it showed little reaction to news of a five-basis-point cut in the German repo rate.

The dollar stood at 1.1634/39 Swiss francs at midday, down from the opening at 1.1673/83 Swiss.

It slipped to Canadian $1.3599/04 from C$1.3604/09. Sterling rose to $1.6000/10 from $1.5998/08.-Reuter