NO NEWS IS BAD NEWS FOR DOLLAR ON DULL DAY

NO NEWS IS BAD NEWS FOR DOLLAR ON DULL DAY

The U.S. dollar declined Thursday, with traders hard-pressed to note any developments of significance.

The cooling down of French political intrigue and a modest 0.3 percent rise in U.S. September producer prices failed to stir trading interest.Dealers were largely coming to a consensus that central bank intervention is unlikely in the near term in the wake of the Group of 7's lukewarm communique over the weekend.

The markets in Tokyo were buzzing Thursday with talk of Fuji Bank incurring large amounts of trading losses in areas such as foreign exchange. The bank issued a formal denial.

The Australian dollar came under pressure after a larger-than-expected fall in employment.

The Canadian dollar weakened as European investors continued to back away

from the currency, worried by the coming referendum on Quebec's status, dealers said.

''People will stay away (from the Canadian dollar) for now. They want to see what the next poll has to say," a trader at a bank said.

Recent polls indicate that the federalist side is still in the lead. However, the trader said the next poll - conducted by Groupe Leger & Leger - is crucial, since it will be the first to measure the effect of the announcement that the popular Bloc Quebecois leader, Lucien Bouchard, has been named to negotiate terms of separation from Canada. That poll will be published in today's Globe and Mail newspaper in Toronto.

In Washington, congressional Republicans are continuing to refine their strategy for forcing President Clinton to accept their seven-year balanced- budget proposal, and Senate Majority Leader Robert Dole made clear that no talks are planned with the White House.

Mr. Dole laid the blame for the impasse at the door of the White House.

''They apparently don't want to do anything," the Kansas senator told reporters. "They're AWOL: absent without leadership."