The euro made further gains against the dollar in overnight trading but has tended to relinquish them at the New York opening. Similarly the euro has improved in yen terms, with the euro/yen cross opening at 99.25 after last night's close at 99.15.

The euro is now trading at $0.9100 after closing at $0.9075 yesterday. The euro continues to be modestly supported by concerns over possible intervention strategies by the

European Central Bank

and by rumors (so far unsubstantiated) of international support for ECB intervention. Individual European central banks are apparent in the euro market making small buys.

In a clear indication of the benefit of a weak euro, the

Federal Statistics Office

announced that German exports rose 21% in March from a year earlier.

German Chancellor

Gerhard Schroeder

said again that the euro is undervalued but that economic growth in Europe will correct that valuation in the near term. "The economic prospects of the European countries are glittering and one day or another this will be what shapes the external value of the euro, which is why I am not at all worried," he said.

"We are near the base of the euro," said Peter Von Maydell of

Credit Swiss First Boston

. "I don't think that anyone can find data to justify these levels." Von Maydell believes the worst days of the euro are probably over, "even without intervention."

The pound is trading half a cent lower at a four-year low vs. the dollar of $1.5255. Euro/sterling has strengthened further in line with the euro's gains and the pound's weakness and is opening around 59.60. This level represents a 5% pull back since the record low of 56.73 last week.

The deputy governor of the

Bank of England


Mervyn King

, said that the BOE was concerned about the strength of sterling against the euro and the negative impact this was having on British industry.

"Euro/sterling is the pound, cable is hardly worth mentioning," said Von Maydell. "The U.K. economy is heading south in a hurry and growth is reversing below European levels -- all because of a strong pound," he says.

Dollar/yen has remained quiet and is opening marginally weaker at 108.80.

Dollar/Swiss franc has again weakened along with the euro's improvement. The SF is at 1.7140 and the euro/Swiss franc cross is firmer at 1.5605.

The Canadian dollar remains on the sidelines at C$1.4925.

The A$ has opened at slightly better levels of $0.5830.

The South African rand has hit another new low vs. the dollar. Today the rand has traded at R7.14 per dollar compared with yesterday's R7.08. The continuing land crisis in Zimbabwe is not showing any signs of stabilizing and major institutions are said to be pulling funds out of South Africa.