Euro steady ahead of Danish referendum

Published September 28th, 2000 - 02:00 GMT

The euro edged up against the dollar and yen in Tokyo Thursday but trade was quiet ahead of a nail-biting Danish referendum on the single European currency, dealers said. 

 

The euro traded at $0.8842 around 2:00 pm (0500 GMT), up from $0.8832 in New York but down from $0.8861 in Tokyo late Wednesday. 

"Trading is thin as many investors are sidelined ahead of the Danish referendum" on Thursday, said Bank of Tokyo-Mitsubishi dealer Kiyoshi Kuzuhara. 

 

"If the result is no (to adopting the euro), the euro will be sold. And investors will then be cautious about more intervention," Kuzuhara said. 

Against the yen, the euro traded at 95.06 yen, up from 94.83 yen in New York but down from 95.43 yen in Tokyo Wednesday afternoon. 

 

"A no (vote) would deliver a severe blow to the euro," DBS Bank in Singapore said in a report. 

A Danish rejection would postpone planned euro referendums in Sweden and Britain, it said.  

"This would strongly undermine confidence on the euro and put the unit's long-term viability into question." 

Opinion polls at the close of the Danish campaign gave a slight edge to the anti-euro camp. But a crucial eight-13 percent of voters had yet to make up their minds. 

 

The dollar meanwhile bought 107.50-51 yen at 2:00 pm, up from 107.37 yen in New York and 106.69 yen in Tokyo late Wednesday. 

There was no lead in dollar-yen trading, Kuzuhara said.— (AFP) 

 

© Agence France Presse 2000 

 

 

 

 

© 2000 Mena Report (www.menareport.com)

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