U.S. DOLLAR OPENS LOWER IN HONG KONG
The U.S. Dollar opened slightly lower
in moderately active trading as bearish sentiment persisted,
dealers said.
    They said the selling pressure was light ahead of expected
meetings of leading finance ministers in Washington this week.
Participants tended to keep their positions small and Bank of
Japan intervention shortly after Tokyo's opening at around
145.30 yen failed to have a strong impact on the market, they
said.
    The dollar opened at 1.8247/57 marks against New York's
1.8270/80 close and the 1.8205/15 finish here yesterday.
    The dollar opened at 145.40/50 yen but weakened to near
145.30 when the Bank of Japan intervened. It finished at
145.60/70 in New York and 145.15/20 here yesterday.
    Dealers said the dollar appeared to be holding comfortably
above the critical 145 yen level now as yesterday's attempt to
break that level failed for lack of momentum. But the markets
generally are not expecting much from the Washington talks
today, they added.
    The dollar is expected to stay within a tight range today
with considerable selling pressure at the 145.60 yen and 1.8270
mark levels, dealers said.
    Dealers said supportive remarks yesterday from Federal
Reserve chairman Paul Volcker and Japanese Finance Minister
Kiichi Miyazawa were ignored as players squared positions.
    Volcker told a Congressional committee the dollar's fall so
far should be "large enough ... To support widespread
expectations of a narrowing in the real trade deficit in the
period ahead."
    Miyazawa, after meeting Treasury Secretary James Baker,
said they agreed on the need for currency stabilization and
that he was satisfied with the role the U.S. Has played in
supporting the dollar since the February Paris accord.
    Sterling opened at 1.6182/92 dlrs against New York's
1.6175/85 close and the 1.6200/10 finish here yesterday.
    Dealers said sterling sentiment remains positive as the
ruling Conservative party maintained its lead in opinion polls.
But they said technical selling may depress it to 1.6150.
    The Hong Kong dollar opened at 7.8005/25 against its U.S.
Counterpart compared with yesterday's 7.8015/35 close.
    Local interest rates tended easier with overnight opening
at four 3-1/2 pct against yesterday's 4-1/2 four pct close.
    Asian dollar rates were steady with three months opening
unchanged at 6-1/2 3/8 pct.
    The dollar started at 1.5147/57 Swiss francs against New
York's 1.5145/55 close and the 1.5137/47 finish here yesterday,
and at 6.0690/0720 French francs against 6.0780/0810 and
6.0600/20.
 REUTER
