26 May 2005, 12:27  The US dollar was stronger near the end of the Asian session

The US dollar was stronger near the end of the Asian session, supported by receding speculation about a near-term yuan revaluation and on concerns over forthcoming referendums on the EU constitution. The dollar started the Asian session generally supported on expectations that the release later today of the US GDP figures will show an upward revision of first quarter economic growth. Talk of a near-term revaluation of the Chinese currency also dampened sentiment towards Asian currencies, giving the dollar an additional lift after a Chinese official told a conference in Chicago yesterday that the time was not right for change in the yuan peg and that the US should not pressure China too much. "Though the official who spoke is not a key decision-maker, his comments and the market's reaction show that the yen is vulnerable to disappointment from China," UBS AG said in a note. The euro market continued to be sidelined by the coming referendums on the EU constitution in France, due Sunday, and the Netherlands, next Wednesday, though increasing signs that the 'No' vote will prevail weighed on the single currency, traders said.

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