U.S. Market December 12, 2000,

 www.nicorp.org

The Dollar was held at bay during the New York Market as participants waited in anticipation for the U.S. Supreme Court's decision on whether to allow further manual recounts in Florida. The Florida Supreme Court upheld a lower circuit late Monday court decision that favors a Bush outcome.

The yen approached a 16- month low against the dollar on concern a Bank of Japan survey of business confidence will reinforce expectations for slower growth in the world's second-biggest economy. The Tankan survey's most closely watched component, the large manufacturers sentiment index, is forecasted to rise to 12 in December from 10 in September. The Dollar traded above 111.65 in early New York and ended the day at 111.30

Sterling gave up recent gains on Tuesday as merger-related currency flows dried up and British inflation data reinforced the view that interest rates have peaked. But uncertainty over the pace of the U.S. economic slowdown was seen putting a floor under the British currency in coming weeks. Sterling ranged from 1.4450 to 1.4500 during NY.

Prime Minister Tony Blair said on Tuesday Britain's economy remained out of step with economic cycles in the euro zone, failing to meet one of the government's key criteria for membership of the single currency. Blair has long said he favors joining the euro in principle if key tests -- including economic convergence and the impact on industry, investment, jobs and flexibility -- are met and Britons approve membership in a referendum.

Bundesbank President Ernst Welteke said on Tuesday that current euro zone interest rates were appropriate and reiterated that the European Central Bank's monetary policy was not hampering economic growth. The Euro held a .8770 to .8810 NY range

The Swiss franc eased on the dollar and the euro in the course of Tuesday, giving up its early gains in range-bound trade before a U.S. Supreme Court ruling which could settle the outcome of the race for the White House. The Swiss traded in a 1.7110 to 1.7170 range in NY on Tuesday.