LONDON, 8 December 2005 — The dollar registered a modest gain against the euro here yesterday while the yen stayed close to a 32-month low — 121.39 — against the US currency.

The single European currency was at 1.1722 dollars in late-day trade after 1.1783 late Tuesday in New York.

The dollar, meanwhile, was trading at 120.97 yen against 120.82. Analysts said the yen has been hurt by the differential in US and Japanese interest rates, notably as the Japanese central bank has kept its rates at near zero.

The dollar has had the benefit of strong economic data and rising interest rates, with markets fully pricing in a quarter-point rate hike on December 13 when the US Federal Reserve next decides on borrowing costs.

The euro was changing hands at 1.1722 dollars against 1.1783 late on Tuesday in New York, 141.77 yen (142.39), 0.6757 pounds (0.6764) and 1.5392 Swiss francs (1.5397). The dollar stood at 120.97 yen (120.82) and 1.3134 Swiss francs (1.3064). The London Bullion Market, the price of an ounce of gold rose to $515.40 from $504.25 late on Tuesday.

Meanwhile, European stock exchanges closed lower yesterday, with the London FTSE 100 index down 0.18 percent at 5,528.8. In Frankfurt the DAX dropped 0.64 percent to 5,266.75, while the Paris CAC 40 fell 0.36 percent to 4,660.58.

In New York, after choppy morning action, the Dow Jones Industrial Average fell 6.95 points (0.06 percent) to 10,849.91, while the NASDAQ composite dropped 5.18 points (0.23 percent) to 2,255.58 at 1640 GMT. The broad-market Standard and Poor’s 500 index shed 2.88 points (0.23 percent) to 1,260.82.

Asian stocks closed mostly higher yesterday. In Tokyo, the Nikkei-225 index rose 61.28 points or 0.40 percent to 15,484.66. In Seoul, the KOSPI index closed up 3.69 points at a record 1,324.75. In Sydney, the SP ASX 200 index added 7.9 points 0.17 percent to 4,623.9. In Singapore, the Straits Times Index rose 3.46 points to 2,311.81. In Kuala Lumpur, the Composite Index was up 5.20 points to 891.67. In Manila, the Composite Index rose 4.27 points to 2,103.42. In Bombay, the 30-share Sensex rose 80.28 points to 8,895.81.

Oil prices fell yesterday after news that US stockpiles of crude oil and refined products rose sharply over the past week, easing concerns about a supply crunch, dealers said. New York’s main contract, light sweet crude for delivery in January, lost 54 cents to $59.40 per barrel in pit trading. In London, the price of Brent North Sea crude for January delivery shed 47 cents to $57.14 per barrel in electronic deals.