13 April 2006, 10:22  Dollar firms

The dollar firmed after the U.S. February trade deficit came in narrower than expected at $65.7 billion, the third widest on record but below economists' estimates of $67.5 billion. The U.S. currency stuck to a narrow range in Asian trade as traders said investors were girding to take profit from its recent rise ahead of the Easter holiday weekend. By 0210 GMT, the dollar was buying 118.47 yen , little changed from levels in late U.S. trade on Wednesday. The euro was also little changed at $1.2103 . Japanese government bonds were mixed in quiet trade, with dealers watching Tokyo shares after a three-day slide and ahead of a five-year note auction. Data on Thursday showed Japan's domestic corporate goods price index rose in March, pointing to building inflationary pressures and a possible interest rate rise later this year. Gold shied from the $600-an-ounce level, lacking momentum to go up as profit taking persisted and oil fell, while copper charged to record levels the day before. Spot gold fell to $595.20/596.00 an ounce on Thursday from $597.50/598.30 late in New York and off a 25-year high of $604 an ounce hit on Tuesday. Oil prices slid after a U.S. government report showed crude stockpiles in the world's largest energy consumer rose last week to their highest level since 1998. Crude stocks in U.S. commercial storage rose 3.2 million barrels last week to 346 million, the highest level in nearly eight years, sending U.S. crude prices down 36 cents on Wednesday.

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