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Dollar slides vs yen

NEW YORK: The dollar tumbled at midday against the Japanese currency as the Bundesbank rate cut fuelled heavy selling of mark/crosses, particularly mark/yen, dealers said.

The dollar fell to 107.10/20 yen at midday from 107.77/80 at the open.

Shortly after midday, dollar/yen broke below support at 107 and 106.70.

Mark/yen hovered near 71 shortly after midday, down from about 71.94 earlier.

Buba lowered Germany's discount rate to 2.50 percent from 3.00 percent and the Lombard rate to 4.50 percent from 5.00 percent.

Buba President Hans Lietmeyer said the official interest rate cut showed Buba saw scope on the downside for rates rather than on the upside.

Dollar/mark fell to 1.5068 at midday from 1.5090/00 at the open. After midday, the dollar slid further, breaking below 1.50 marks.

Dollar/mark had initially rallied after Buba announced the rate cut. The dollar had repeatedly tested near the 14-month high of 1.5136 marks but was rebuffed by heavy selling, dealers and analysts said.

Elsewhere, the dollar fell to 1.2155/65 Swiss francs at 1400 EDT/1800 GMT from 1.2293/03 at the open. Sterling was at $1.5170/80, up from $1.5090/00. The dollar rose to Canadian $1.3623/28 from C$1.3558/63.-Reuter