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Dollar shows easier trend

NEW YORK: The dollar slackened by midday after profit-taking deflected an earlier rally which failed to pierce yesterday's 14-month high vs. the mark.

At midday, the dollar was at 1.5027/32 marks, down from 1.5035/40 at the open and at 108.44/49 yen, down from 108.60/70.

The dollar reached 1.5049 marks in Europe Thursday, as the mark crumbled against key currencies.

The dollar's surge has been attributed by some to a German currency battered by expectations of lower German yields.

The mark sank Thursday to it's lowest level versus Sweden's crown since June 1993, and to its weakest point against the French franc since March 1994.

Tietmeyer said the Buba will evaluate whether there is room to cut interest rates but said the development of M3 money supply growth would largely dictate any future moves.

The U.S. stocks' slide in recent days has, so far, only had a limited dampening effect on dollar demand, dealers said.

The Dow Jones Industrial Stock average slipped 70 points in early trade Thursday, before recovering somewhat by midday.-Reuter