Dollar rebounds from sharp falls

LONDON: The dollar rebounded slightly on Friday as investors took profits from the euro and the yen's recent advances to multi-month highs.

The European single currency fell to 1.4679 dollars, up from 1.4740 late in New York on Thursday, when it had struck 1.4767 -- the highest level in almost one year.

Meanwhile, the dollar firmed to 91.16 yen from 91.03 while the euro was at 133.85 yen from 134.17.

The greenback had hit a seven-month low of 90.16 on Wednesday after Japan's new finance minister indicated tolerance for a strong currency.

"Economic data is ultra thin on the ground today, leaving those who were short with little else to contemplate other than whether to take profits ahead of the weekend," said Calyon analyst David Keeble.

Investors were awaiting fresh leads after mixed US data, weak British economic figures, and disappointment among some traders that the Swiss central bank shied from intervening in markets to prop up its currency, analysts said.

The British pound wobbled after news that the country's public finances plunged further into the red in August, striking a record deficit for the month under the weight of a deep recession.

Official data showed that the public sector net borrowing requirement -- the government's preferred measure of public finances -- hit 16.1 billion pounds (17.9 billion euros, 26.3 billion dollars).

That was the biggest August deficit on record and the third-biggest monthly figure since records began.

"The pound is under intense pressure this morning, falling to 1.10 against the euro and slipping against the dollar," said CurrenciesDirect analyst Phil McHugh, who cited factors including the "dire" public finances.

Elsewhere on Friday, the European Central Bank said the eurozone's balance of payments swung back into positive territory in July for the first time in more than a year, showing a surplus of 6.6 billion euros (9.6 billion dollars).

The last time the balance of payments, an overall measure of all current payments into and out of a country or region, showed a surplus was in February 2008, when it came to 2.6 billion euros.

In London on Friday, the euro was changing hands at 1.4679 dollars against 1.4740 dollars late on Thursday, at 133.85 yen (134.17), 0.8981 pounds (0.8960) and 1.5160 Swiss francs (1.5159).

The dollar stood at 91.16 yen (91.03) and 1.0323 Swiss francs (1.0283).

The pound was at 1.6316 dollars (1.6445).

On the London Bullion Market, the price of gold eased to 1,011.15 dollars an ounce from 1,018.50 dollars an ounce late on Thursday.