http://www.yahoo.com/headlines/current/business/stories/dollar.html (Einblicke ins Internet, 10/1995)
NEW YORK (Reuter) - The dollar drifted lower against the German mark in languid trading Friday after economic data failed to give a clear reading on the health of the economy.
Light selling also hit the dollar as traders adjusted their positions ahead of the Labor Day holiday on Monday.
In late afternoon trading, the dollar was at 1.4630 marks, down from Thursday's 1.4671 marks. It was slightly higher at 97.47 Japanese yen, from Thursday's 97.33 yen.
The dollar initially shot up to a high of 1.4725 marks on a much stronger-than-expected rise in U.S. non-farm payrolls.
Lower rates generally bode ill for the dollar as they tend to diminish the attractiveness of dollar-based assets and so undermine the value of the currency.
Traders quickly turned around and sold dollars after analysts took a closer look at the report and realized that it may not have been quite as strong the headline number implied.
Dealers said the data did not give a clear indication of whether the Federal Reserve would cut short-term interest rates when it meets again Sept. 26. The Fed cut interest rates in July for the first time in nearly three years, but left rates unchanged at its last meeting in August.
Traders said the dollar also was hurt by a strengthening in the mark and Swiss franc.
The mark was particularly strong against the French franc, rising overnight on speculation about further splits within the French cabinet following finance minister Alain Madelin's shock resignation last Friday, traders said.
The rumors were denied by a French government source.
Traders also sold dollars for Swiss francs as market participants bought up the European currency amid concern about tensions in Bosnia.
The dollar stood at 1.1975 Swiss francs, down from 1.2038 Swiss francs on Thursday.
Traders noted that the dollar's moves on Friday were likely exaggerated as trading volumes were extremely light due to an abbreviated New York trading session ahead of a three-day holiday weekend.
September trading activity will likely get into full swing next Tuesday when there is full market participation.
Some traders said the dollar may head up to 100 yen and 1.50 marks in the near future but it may still run into problems on its climb.
In other trading, the British pound was at $1.5575, up from $1.5520, while the dollar was slightly higher at Canadian $1.3436 from $1.3432.