14 June 2005, 10:42  The dollar was slightly lower against the yen in Asian trading

The dollar was slightly lower against the yen in Asian trading Tuesday morning from its overnight levels, erasing much of its rally against the Japanese currency. The euro also advanced. The dollar was trading at 109.42 yen late morning, up 0.85 yen from late Monday in Tokyo but below the 109.53 yen it bought in New York later that day. The euro rose to $1.2125 from $1.2078 late Monday and to 132.68 yen from 131.34 yen. The dollar reversed some of its gains from Monday in New York trading. The Japanese currency came under pressure from disappointing data in revised economic growth. Revised gross domestic product numbers released Monday were weaker than the initial report. Also weighing on the yen is a fresh climb in crude prices, which climbed back above $55 per barrel, up more than $2 a barrel. The dollar has also gained from a recent loss of confidence in the euro. The French and Dutch "no" votes on the European Union constitution has pushed the single currency lower this month. In New York trading Monday, the British pound fell to $1.8047 from $1.8119. The dollar rose to 1.2721 Swiss francs from 1.2685, and to 1.2558 Canadian dollars from 1.2513. The dollar was boosted after the U.S. Commerce Department reported Friday that the April trade deficit widened to $56.96 billion from a revised $53.56 billion in March. The market had expected a trade gap of $58 billion. The data reinforced the dollar by suggesting that the United States' longer-term structural problems, like its huge trade deficit and current account deficit, may be stabilizing. More U.S. economic information this week, including international capital flow data and first-quarter current account figures, could further boost the dollar against the euro, analysts said.

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