By Cornelius Luca
New York, May 31 (BridgeNews) - The euro dropped to a fresh six-month low of 84.65 cents to the dollar and to a 5 1/2-month low of 100.45 yen on heavy Japanese repatriations. Euro's woes were amplified by the European Central Bank (ECB) President Wim Duisenberg, who said the bank was only concerned about the euro's value if it affected prices, a remark which dampened fears of ECB intervention to support the weakening single currency.
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ECB vice president Christian Noyer tried some spin control, telling AFP that ECB intervention to support the ailing euro is a possible option. But the traders are not going to fall for this hedging attempt, so the euro remains vulnerable.
Significant euro/yen sales dragged down dollar/yen to a three-month low of 118.55.
Dollar/Swiss franc replicated with a rally to a six-month high of 1.7968, which brings it closer to the top of the uptrend at 1.8111. As euro/sterling broke the support of its declining channel on its way to a fresh six-month low of 0.5970, sterling/dollar was able to limit its losses to a two-day low of 1.4170. Meanwhile, dollar/Canada marked a one-week high of 1.5511.
Thursday's U.S. agenda includes speeches by Federal Reserve Bank of Dallas President Robert McTeer and Cleveland Fed Bank President Jerry Jordan, alongside the May Chicago purchasing managers report.
One day before the release of the key U.S. jobs data, the euro remains weak across the board, particularly since continuing evidence of rising inflation in the euro zone will preclude the ECB from cutting rates and boosting the regional economy. Dollar/yen remains subject to euro/yen's swerves.

Current Previous Change Global Global
NY open NY close low high

USD/JPY 119.10 120.35 -1.25 118.55 120.53
EUR/USD 0.8480 0.8570 -0.0090 0.8462 0.8570
EUR/JPY 100.99 103.15 -2.16 100.45 103.13
GBP/USD 1.4188 1.4266 -0.0078 1.4170 1.4266
USD/CHF 1.7936 1.7778 0.0158 1.7783 1.7968
USD/CAD 1.5498 1.5433 0.0065 1.5429 1.5511
AUD/USD 0.5067 0.5125 -0.0058 0.5064 0.5128
NZD/USD 0.4106 0.4170 -0.0064 0.4103 0.4171
SP.1 1254.10 4.10 1250.00 1256.10
ND.1 1804.00 18.50 1784.00 1807.00