US DOLLAR CLIMBS BACK TO 100 YEN AS TRADERS WATCH FOR INTERVENTION

US DOLLAR CLIMBS BACK TO 100 YEN AS TRADERS WATCH FOR INTERVENTION

The U.S. dollar rose against the Japanese yen Monday, regaining the 100-yen level, and held its own against the deutsche mark.

Market talk that central bank intervention may be seen ahead of next weekend's meeting of Group of 7 finance ministers got a mixed reaction from traders.The French franc and Italian lira were unable to make ground against the deutsche mark following a weekend meeting in Valencia, Spain, at which European Union finance ministers reaffirmed their support for the 1999 launch of a common currency.

Dealers said, however, that the generally harmonious meeting eased the tensions in the European monetary system.

The dollar extended the surprise gains it made Friday afternoon, dealers said.

But the dollar stopped rising after the National Association of Purchasing Managers released its September survey. The NAPM manufacturing index rose to 48.3 percent from 46.9 percent in August, but a number below 50 percent suggests slowing in the manufacturing economy.

The weaker-than-expected U.S. economic reports revived hopes for an interest-rate cut by the Federal Reserve after Congress reaches a budget accord.

Senate Minority Leader Thomas Daschle on Monday said Majority Leader Robert Dole's admission that Senate Republicans might not seek all of their proposed $245 billion in tax cuts was a step toward compromise on Medicare and balanced-budget legislation this year.

Sen. Daschle, D-S.D., said he was "surprised" by Mr. Dole's statement in a television interview Sunday, and said it shows "some" Republicans are ''finally getting it" - that the electorate won't stand for a sharp slowdown in Medicare spending over the next seven years to pay for a tax cut.

Sen. Dole, R-Kan., said in the interview that even "conservative Republicans" have indicated "maybe we shouldn't try to go all the way to the $245 billion" in tax cuts.

However, House Speaker Newt Gingrich, R-Ga., was unmoved, noting in a separate TV interview Sunday that all Senate Republicans had backed the full amount of the tax cuts when they voted for the budget outline this year. Rep. Gingrich said the House couldn't walk away from that promise.

The Canadian dollar rebounded to near a one-month high on weekend polls indicating Quebec is unlikely to separate from Canada.