LONDON (AFP) - The besieged dollar turned firmer after US Treasury Secretary John Snow reiterated Washington's preference for a strong US currency and a European Central Bank official voiced concern about recent sharp gains by the euro.
The euro in late-day deals had slipped to 1.2945 dollars from 1.2973 late in New York on Friday.
The dollar was meanwhile trading at 105.53 yen after 105.54 on Friday.
Snow, who was in Dublin at the start of a four-nation EU visit, reverted to his well-worn phrases about the Bush administration's "strong dollar" policy and the need for open markets to set exchange rates.
"We support a strong dollar," Snow said in response to questioning from reporters about the recent dollar movements. "A strong dollar is in America's interest."
Snow also brushed aside questions about intervention to stem the dollar's slide, saying "currency values are best set in open and competitive exchange markets."
His comments came amid mounting concern in European finance circles about gaping US current account and budget deficits and a dollar that appears to be eroding with the blessing of the US administration.
A stronger euro threatens to dampen eurozone exports, and by extension economic growth, while a weaker dollar is seen as boosting sales of US goods overseas.
Analysts here expressed skepticism at Snow's remarks, predicting little action on the part of Washington to stem the dollar's slide.
The greenback nevertheless gained some ground on the Snow comments, which were complemented by those from ECB board member Jose Manuel Gonzalez Paramo, who said the "excessive" volatility of the euro-dollar exchange rate had caused the European recovery to run out of steam.
The pound meanwhile fell sharply on market talk of a very weak British house price survey by the Royal Institute of Chartered Surveyors that was due out early Tuesday.
Recent surveys and data showing the housing market is cooling as higher borrowing costs take their toll have battered the pound lately, with an increasing number of market players believing that there is no scope for further British rate hikes.
The euro was changing hands at 1.2945 dollars from 1.2973 late on Friday in New York, 136.57 yen (136.91), 0.6998 pounds (0.6987) and 1.5256 Swiss francs (1.5205).
The dollar stood at 105.53 yen (105.54) and 1.1787 Swiss francs (1.1718).
The pound was at 1.8495 dollars (1.8560), 195.14 yen (195.89) and 2.1801 Swiss francs (2.1752).
On the London Bullion Market, the price of an ounce of gold stood at 439.50 dollars against 436.05 late on Friday.
11/15/2004 - 18:32 GMT - AFP