DOLLAR CLOSES LITTLE CHANGED IN FRANKFURT
The dollar closed virtually unchanged
from yesterday's finish, but near the day's high after another
extremely quiet session.
    With the G-5 meeting in Washington ahead of this week's IMF
interim committee, traders remained reluctant to open any large
positions. Towards the end of the day the dollar firmed after
failing earlier to hold beneath 1.82 marks. Some dealers said
Senate testimony from Fed Chairman Paul Volcker also lent
support.
    The dollar closed at 1.8265/75 marks after opening at
1.8200/15 and closing yesterday at 1.8260/70.
    Volcker said that a further sizeable dollar decline could
be counter-productive, and that exchange rate adjustments have
been enough to narrow the U.S. Trade deficit.
    Such remarks in the past might have moved the dollar
sharply, today they only pushed it up 20 or 30 basis points
when it was already firming for technical reasons.
    The dollar in any case held in a narrow range today,
trading early in the morning just below 1.82 marks and rising
to a high of 1.8270.
    Dealers said they were awaiting comments after the G-5
meeting from U.S. Treasury Secretary James Baker.
    Looking slightly further ahead, the market is awaiting U.S.
February trade data, due on April 14.
    Another set of disappointing figures could push the dollar
below its recent 1.80-85 mark range if there have been no
supportive statements from G-5 officials in Washington in the
meantime, dealers said.
    Sterling closed slightly easier at 2.950/954 marks, after
opening at 2.951/955 and closing yesterday at 2.954/958.
    The pound has been buoyed by expectations the ruling
Conservatives will win the next U.K. Election.
    But dealers said sterling now looks high against the mark
and room for further gains must be limited.
    Many dealers believe sterling will enter the EMS joint
float after a U.K. Election. In this case, its ceiling could
well be at or near 2.95 marks, dealers said.
    The yen closed at 1.2550/70 marks per 100 after closing
yesterday at 1.2490/2510, and the Swiss franc firmed to
120.55/70 marks per 100 from 120.10/50.
    The French franc ended unchanged at 30.04/07 marks per 100.
 REUTER
