Dollar dips with focus on oil, G7

LONDON (AFP) - The dollar fell slightly against the euro and yen as dealers focused on the oil market and this weekend's Group of Seven meeting in the absence of any major data.
The single European currency rose to 1.2325 dollars from 1.2321 late on Tuesday in New York.
The dollar was being traded at 111.10 yen from 111.39 on Tuesday.
The yen has struggled in recent weeks on growing concerns that the current oil price spike will damage the Japanese economic recovery.
After breaching 50 dollars per barrel on supply disruption concerns, oil prices fell back, but this failed to soothe market worries about a global economic slowdown, analysts said.
Rising oil prices could affect the Japanese economy in particular, as it is heavily dependent on imported oil, they added.
On the New York Mercantile Exchange, the price of light sweet crude for November delivery dropped 29 cents to 49.61 dollars a barrel in pre-opening electronic trading as worries about Nigerian supplies eased.
Dealers were also taking the view that this weekend's Group of Seven meeting of finance ministers and central bankers will not lead to a dramatic change in China's policy of pegging its currency to the dollar.
Analysts said the US administration's attempts to force a re-evaluation in Chinese currency policy ahead of this autumn's presidential election are unlikely to succeed.
The dollar would drop should this weekend's G7 meeting in Washington lead to some sort of change in China's policy of pegging its currency, analysts said.
There has been mounting pressure on China in recent days to pursue a more flexible currency policy with suggestions that China's presence at the meeting may presage some near-term change in policy.
"If there was a surprise move, the main effect would be to drag the Asian currencies, including the yen, up and the dollar down," said Neil Mackinnon, chief economist at currency manager ECU Group.
The euro was changing hands at 1.2325 dollars against 1.2321 late on Tuesday in New York, 136.96 yen (137.28), 0.6811 pounds (0.6795) and 1.5532 Swiss francs, unchanged from Tuesday.
The dollar stood at 111.10 yen (111.39) and 1.2597 Swiss francs (1.2594).
The pound was at 1.8101 dollars (1.8126), 201.10 yen (201.88) and 2.2801 Swiss francs (2.2823).
On the London Bullion Market, the price of an ounce of gold stood at 411.85 dollars against 411.70 dollars late on Tuesday.