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Dollar downturns

NEW YORK: The dollar traded in narrow ranges during the U.S. morning and appears to be solidifying its downside, especially against the mark, traders said.

The mark continues to suffer against most currencies, which helped push the dollar to a fresh 14-month high in Europe at 1.5242 marks, though the dollar failed to revisit that level in U.S. trade.

The dollar edged lower to 1.5211/16 marks at midday from 1.5217/22 at the open and to 106.74/81 yen from 106.78/88.

The faltering mark/yen cross continued to suppress the otherwise exuberant dollar, with dollar/yen checked near the 107 level. Persistent, if unconfirmed, rumours of official Japanese interest near 106.40 yen provided support.

The dollar has rallied about 2.5 pfennings from a low of 1.4965 marks last Thursday without a significant correction. Yet, the resistance end of the current range of 1.5175-1.5250 marks still looks more vulnerable than support, traders said.

The lira continues to lead the charge against the mark, poised near 1020 per mark with an eye toward 1000. Some market experts are forecasting a 950 mark/lira rate in six months time, with a consensus building that the lira could reenter the European Exchange Rate Mechanism near the 1000 level.

The dollar was nearly flat at 1.2319/27 Swiss francs from 1.2325/35 at the open. Sterling was also little changed at $1.5136/43 from $1.5130/40.

The dollar rose to Canadian $1.3614/19 from C$1.3575/78.-Reuter