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. Last Updated: 07/27/2016

German Indicators Offset Dollar's Surge Against Yen

LONDON -- The dollar's surge above 107 yen stalled in Europe on Monday as dealers concentrated on German economic indicators due this week, offsetting some euphoria about the currency after Japan reported surging imports and a falling trade balance.


In London, early excitement over the flotation of Britain's Railtrack soon subsided, leaving stocks trading in a narrow range, marginally above opening levels.


In early European trading the dollar rose to 107.35 yen, compared to Friday's late 106.67 figure.


Tokyo had said its trade surplus fell 65.5 percent in April to 320.66 billion yen ($3.01 billion) from 928.78 billion yen a year earlier.


The dollar was less bullish against the Deutsche mark. Even though there was little expectation of an early reduction in German interest rates, and despite the fact Germany is facing a wave of token strikes this week, the dollar stuck below 1.54 marks -- described by dealers as a key level.


The other star of the currency markets was the buoyant lira, which was hovering around 19-month highs beyond 1,010 per mark. Romano Prodi was sworn in as the new Prime Minister on Saturday, enlivening prospects that the mini-budget will be passed and Italy can pave the way for getting back into the ERM, dealers said.