DOLLAR STEADY IN EUROPE AHEAD OF WASHINGTON TALKS
The dollar was steady ahead of a series
of meetings of leading finance ministers starting today in
Washington, despite low expectations for the outcome of the
talks and still negative underlying sentiment toward the
dollar.
    "There's too much disagreement between the Japanese and the
rest for them to come out with anything unanimous," said one
U.K. Merchant bank trader, reflecting the general tone.
    However, dealers said position squaring helped push the
dollar to a final 1.8240/50 marks, up from the opening
1.8195/205 and near yesterday's close of 1.8245/55.
    Meanwhile, the pound was underpinned by today's opinion
poll findings of further strong support for the Conservative
Party, but fear of Bank of England intervention limited buying.
    Dealers said they doubted the U.K. Central bank had needed
to sell sterling to curb rises today, with the markets so
quiet. The Bank of England was rumoured to have sold pounds
yesterday.
    Sterling ended at 72.3 pct on the trade weighted index,
unchanged from the opening but off 0.1 point from yesterday's
finish. It closed at 1.6185/95 dlrs, after an opening 1.6213/23
and previous close of 1.6163/73, and at 2.9490/520 marks,
against an opening 2.9540/75 and yesterday's 2.9490/530.
    Traders said there was little hope that the Western
financiers will be able to find a lasting solution to the
problem of currency instability during the current series of
talks in Washington.
    These are scheduled to start today with an informal Group
of Five (G-5) session.
    Tomorrow's Group of Seven meeting - of the U.S., Japan,
West Germany, France, the U.K., Italy and Canada - is seen as
the key meeting.
    Traders said few operators will be prepared to open
positions ahead of news emerging from the talks.
    However, some traders said that, given the low level of
expectations, the market could be particularly susceptible to
signs of accord between the U.S. And Japan, which would give
the dollar a sharp upward push.
    They said interest is still largely centred on the yen,
with any fresh dollar weakness expected to show in that market
first.
    Meanwhile, today's comments from U.S. Federal Reserve Board
Chairman Paul Volcker failed to have a lasting impact on the
market. His statement that a further sizeable dollar fall could
be counter-productive aided a brief run-up in mid-afternoon,
but there was little followthrough, traders said.
    The dollar finished at 145.25/35 yen, up from an opening
145.05/15 but below yesterday's European close of 146.00/10.
    It ended at 1.5120/30 Swiss francs, against the start of
1.5130/40 and previous final 1.5180/90, and at 6.0650/700
French francs, after beginning at 6.0525/75 and ending
yesterday at 6.0660/710.
 REUTER
