EUROPEAN financial markets closed stronger yesterday, giving a quiet but heartfelt welcome to news of Mr Boris Yeltsin's presidential election victory in Russia and unchanged US interest rates.
The dollar closed little changed after a slight decline against the deutschmark in the wake of Mr Yeltsin's win.
Trade was subdued for most of the session after protective hedging strategies established as insurance against a Russian election upset began to unwind after the Russian results.
This saw the D-mark regain some ground, mainly on the Swiss franc and sterling. "Uncertainty over Mr Yeltsin's health should ensure that the dollar does not reverse too far and DM1.5180 should hold", said Mr Barry Vanderlaan, senior trader at Ifexco in Geneva.
Forex dealings were quiet as US players were absent from the markets for the Independence Day holiday. Dealers were also awaiting US jobs data today. Strong US jobs growth in recent months has upset the markets.
