30 May 2005, 09:41  US dollar eases vs yen, steady vs euro in Tokyo after French euro vote

The US dollar eased back against the yen and was little changed against the euro with investors unwilling to push the greenback further after earlier gains in Asian trade on the back of France's rejection of the EU constitution in a weekend referendum, dealers said. Earlier in Sydney the US unit had risen on news of the vote, which brings into question France's role in the EU, as well as some recent data showing that the US economy remained relatively robust. Satoru Ogasawara, a senior currency strategist at Credit Suisse First Boston (CSFB), noted that speculators pushed the dollar up sharply late Friday in New York with some further gains seen in Sydney today but they are now unwilling to push it further. He noted that some players closed their short euro positions ahead of today's holidays and they are also awaiting the outcome of the Dutch vote on the EU constitution this Wednesday. Ogasawara said the euro could come under further pressure from speculators in the near term on worries about the eurozone economies whose performances are mostly lagging those of the US and elsewhere. US/European interest rate differentials also increasingly favor the US unit, strategists said.

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