By Cornelius Luca
New York, July 23 (BridgeNews) - The U.S. dollar opens on a strong tone versus all major currencies following the Genoa Group of Eight summit, which distinguished itself by public violence rather than by focus on currencies. While the G8 communique omitted both the dollar strength and the euro-zone interest rates, Treasury Secretary Paul O'Neill reiterated that the U.S. remained committed to the strong dollar policy. A soft Ifo business sentiment in the western German business sentiment also helped the dollar.
Euro/dollar and sterling/dollar fell to a five-day low of 0.8665 and a three-day low of 1.4222, while dollar/yen and dollar/Swiss franc advanced to a three-day high of 124.15 and to a five-day high of 1.7370, respectively. Only dollar/Canada rose within an inside range after peaking Friday at a new eight-week high of 1.5473.
A G8 official said foreign exchange was only discussed briefly during this weekend's while Treasury's O'Neill expressed optimism that the domestic economy will rebound by yearend.
Business sentiment in the western German manufacturing, trade and construction industries dropped for the fifth month in a row in June below-forecast reading of 89.5 points in June compared with revised 90.8 posted in May, the Ifo economic institute reported.
This week's economic agenda will only kick in high gear on Thursday, with the second quarter employment cost index. On Friday, traders will be bracing for the release of the second-quarter GDP. The dollar is expected to add to its overnight gains.

Current Previous Change Global Global
NY open NY close low high

USD/JPY 124.09 123.00 1.09 122.95 124.15
EUR/USD 0.8676 0.8718 -0.0042 0.8665 0.8728
EUR/JPY 107.66 107.26 0.40 106.55 107.67
GBP/USD 1.4230 1.4284 -0.0054 1.4222 1.4270
USD/CHF 1.7350 1.7255 0.0095 1.7267 1.7370
USD/CAD 1.5439 1.5440 -0.0001 1.5419 1.5456
AUD/USD 0.5073 0.5056 0.0017 0.5055 0.5078
NZD/USD 0.4091 0.4090 0.0001 0.4087 0.4107
SP.1 1219.20 4.20 1206.00 1219.50
ND.1 1708.50 25.00 1656.00 1719.00