Brokers Tip Low Of 58 Us Cents For $a

The Age

Thursday December 24, 1998

ELI GREENBLAT

The dollar fell to a low of 61.12 US cents yesterday, with analysts saying it looked set to move lower.

Last night it was trading at 61.38 US cents in Europe.

Currency analysts said they could see it falling to below 60 US cents by February. One said it could scrape as low as 58 US cents within two months.

``I think the dollar could test the 61US cents barrier soon, and then fall to 58 cents because of a number of external factors, including low commodity prices, a drop in Australian exports, and a weaker world economy," said BNP's senior strategist, Mr Clifford Bennett.

``We are going into a new year with many external pressures and no good economic news on the horizon."

The Commodity Research Bureau Index, which is an internationally recognised measure of commodity prices, rose in New York overnight but this was after two consecutive falls - leaving the CRB 7.2 per cent below last month's levels.

The 10-year bond fell $4.50 per $1000 face value, forcing the yield five basis points higher to 4.93 per cent.

The yield on the three-year 2001 bond rose three basis points to 4.53per cent.