5 May 2005, 16:29  The dollar was briefly rattled

The dollar was briefly rattled by reports of an explosion in front of the British consulate in New York on Thursday but quickly pared most of its earlier losses following reports of no casualties. However, it remained weak against the euro and the yen as investors focused on news about China and an uncertain economic outlook in the U.S. ahead of Friday's jobs data. The explosion shattered windows around the consulate in the early hours of the morning as British voters went to the polls in a general election. The broad market sentiment focused on Friday's release of jobs data from the United States and a trickle of comments from Asian officials gathering in Istanbul amid speculation that China could revalue its yuan currency. "The news from New York is being ignored now, given that most people think it was just a gas leak rather than being an act of terrorism," said David Mann, foreign exchange strategist at Standard Chartered in London. "People are focusing on the numbers, particularly on payrolls. And the comments on China are reinforcing the fact that external pressure on China to revalue is incredibly high." "But those who expect it to happen soon may be disappointed and this would be positive for the dollar."

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