U.S. DOLLAR CLOSES LOWER IN THIN HONG KONG TRADING
The U.S. Dollar closed lower after a
day of thin trading as most operators were sidelined ahead of
the International Monetary Funds meeting in Washington this
week, dealers said.
    They noted the Group of Seven industrialised nations is
expected to meet and discuss currency movements during the
course of the IMF gathering.
    But some speculative selling of the dollar was noted on
conviction that the Bank of Japan will intervene less during of
the meetings. The dollar ended at 145.15/20 yen against Tokyo's
145.25 close and New York's final 145.85/90.
    Dealers said, however, the Japanese central bank bought
dollar persistently throughout today and limited the dollar's
falls.
    The U.S. Unit eased to 1.8205/15 marks from an early
1.8230/40 and New York's 1.8260/70 close.
    It was under pressure also because most traders anticipated
the currency meeting to bring little surprise, dealers said.
    Sterling advanced to 1.6200/10 dlrs from an early 1.6185/95
and New York's final 1.6175/85 on rising support to the ruling
Conservative Party of Britain, dealers said.
    They said the pound gained ground on belief that Prime
Minister Margaret Thatcher will call an early general election
in June.
    But chartists said they expect strong resistance around
1.62 dlrs.
    Elsewhere the dollar fell to 1.5137/47 Swiss francs from
New York's final 1.5180/90 and was lower at 6.0600/20 French
francs against 6.0745/75.
    Asian dollar deposits were lower with the three months
settling at 6-1/2 3/8 pct against Friday's close of 6-11/16
9/16 and the six months eased to 6-5/8 1/2 pct from 6-3/4 5/8.
    The Hong Kong dollar stayed on the weak side of its 7.80
peg with the U.S. Unit, finishing at 7.8015/35 against Friday's
close here of 7.8005/25.
    Interbank rates were firmer following the local banks' move
to raise prime rates by half-point to 6-1/2 pct, effective
today, dealers said.
    The overnight rose to 4-1/2 1/4 pct from Friday's close of
four 3-1/2, while the three months was unchanged at 5-1/4 1/16
pct.
 REUTER
