Financial Post Articles
The US$ fell against major currencies yesterday on concern European monetary union may not proceed as planned, and as traders braced for this week's meeting of officials from the world's leading industrial countries.
French President Jacques Chirac's decision to dissolve parliament and hold early elections fanned concern over monetary union, boosting the German mark against the US$ and other currencies. The US$ fell against the yen as traders fretted that Group of Seven officials might try to halt its rally.
``The US$ has been a victim of mark strength,'' said Paul Farrell, a manager of foreign exchange sales at Chase Manhattan Bank.
The US$ fell as low as 1.6953 marks, its lowest since April 7. It was at 1.6963 marks in late trading, down from 1.7102 marks late Friday. The US$ fell to 125.32 Japanese yen, down from 125.85 yen Friday.
The mark also rose against the French franc, Italian lira, the yen and other currencies.
European monetary union includes a single currency, the euro, which would supplant the mark as Europe's primary currency. So signs the union won't start on schedule often lift the mark.
The US$ fell against the Japanese currency as traders grew concerned that finance ministers and central bankers from this weekend's meeting of the G7 nations -- the U.S., Canada, Britain, Germany, France, Italy and Japan -- will indicate the US$ is strong enough.
The G-7 last met in February in Berlin, where it declared victory in its two-year effort to resuscitate the US$ from its postwar lows.
The C$ closed slightly higher. The US$ fell to $1.3989 from $1.3998 at Friday's close. The C$ rose to US71.48 cents from US71.44 cents.
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