The dollar was significantly lower in European trading this morning after falling sharply against the yen in Asian markets. Gold steadied after opening higher. The dollar was under pressure because of President Bush's statement last week confirming his support for a tax increase, and the smooth start of German monetary union, dealers said. In Tokyo, the dollar closed at 151.40 yen, down 1.45 yen from the finish Friday, when the dollar fell 1.57 yen. Later in London, the dollar was quoted at 151.20 yen. Other dollar rates in Europe, compared with Friday: _1.6535 West German marks, down from 1.6653 _1.4010 Swiss francs, down from 1.4155 _5.5570 French francs, down from 5.5945 _1.8605 Dutch guilders, down from 1.8737 _1,214.60 Italian lire, down from 1,222.50 _1.1623 Canadian dollars, down from 1.1657 In London, the British pound was quoted at $1.7570, up from $1.7450 late Friday. The mark was boosted by the early success of monetary union with East Germany. Moderate cash withdrawals by East Germans dampened fears of excessive consumption and subsequent inflation, dealers said. The dollar's low opening in Tokyo followed a decline on overseas markets. It fell further as securities and life insurance companies actively sold it, dealers said. ``Market players bought the yen mainly because short-term interest rates have been rising,'' said a dealer with Mitsui Taiyo Kobe Bank, speaking on condition of anonymity. Also pushing the dollar lower was speculation over lower U.S. interest rates. Gold dealers in London fixed a recommended price of $357.10 per troy ounce this morning, up from $353.25 bid late Friday. In Zurich, the metal traded at $356.90 per troy ounce, up from $352.00 bid late Friday. Silver bullion rose in London to a bid price of $4.91 a troy ounce, from $4.84 bid late Friday.
