The dollar rose against the euro for the first time in three days as U.S. stock indexes advanced and crude oil prices fell. The dollar fell last week the most against the euro in two months. The dollar remained higher versus the euro after an industry report showed an unexpected increase in Americans signing contracts to buy existing homes in April. The index of pending home resales rose 6.3 percent to 88.2, the highest in six months, following a 1 percent drop in March, the National Association of Realtors said today. The median forecast of 32 economists surveyed was for a 0.4 percent drop.The British pound rose to a one-week high against the dollar after a government report showed producer-price inflation accelerated in May to the fastest pace in two decades. The Bank of England held the target lending rate at 5 percent last week.
The yen dropped versus all of the major currencies after a government report indicated Japan's longest postwar expansion may be over.
EUR/USD fell from a high at $1.5840 to $1.5620.
GBP/USD firmed from a low at в $1.9670 to $1.9800, retreating later till $1.9700.
USD/JPY rose from Y104.50 to recent days high at Y106.30.

UK data at 0830GMT also sees April industrial production, which isexpected to be flat on the month and rise 0.1% y/y.
European data starts at 0600GMT with May wholesale prices from Germany. This is followed at 0645GMT by French industry production for April and Italian industrial production, also for April. At 1230GMT, the US international trade gap is expected to widen to $59.5 billion, as imported petroleum prices surged further. Canada international merchandise trade for April is also due at the same time.

Stock
closing
Nikkei 225 -308,06 -2.13% 14,181.38
Topix -30.57 -2.18% 1397,54
FTSE 100 -29.20 -0.49% 5,877.60
CAC 40 +4.06 +0.08% 4,799.38
Xetra Dax +11.82 +0.17% 6,815.63
DOW +78.49 +0.64% 12,288.30
NASDAQ -15.10 -0.61% 2,459.46
S&P 500 +1.19 +0.09% 1,361.87
10yr Note +0.5400 +0.137% 3.992%
NYMEX Crude Oil -4.19 -3.02% 134.35
Gold -0.90 -0.10% 898.10

Japan's stocks dropped the most in two weeks after the U.S. unemployment rate had the biggest gain in 22 years, sparking concern the largest export market for Japanese- made electronics and cars will sink into a recession.
Denso, part owned by Toyota Motor Corp., lost 4.2%, the sharpest decline since March 17, while Toyota slipped 2.9%. Canon, the world's largest digital-camera maker, retreated 4.4% and Sony Corp. skidded 3.7%, the biggest drop since April 14. Makers of electronics and cars accounted for about a third of the Topix's drop.
Nomura Holdings Inc., Japan's largest securities firm, plunged 5%, the biggest drop since April 8, while Daiwa Securities Group Inc., second largest, dived 3.1%. The Topix Securities
Inpex jumped 3.9% and was the biggest winner on the MSCI World Index. Closest rival Japan Petroleum Exploration Co. rose 1.8%. A gauge representing six mining companies, including both stocks, jumped to a two-week high and was one of two industry groups that gained on the Topix as the remaining 31 declined.
AOC Holdings Inc., which holds stakes in South China Sea and North Sea oil fields, jumped 7%, the highest since Jan. 9. The company's shareholders include the Saudi Arabian government, state-owned Kuwait Petroleum Corp. and Tokyo Electric Power Co.

European stocks fell for a fourth day as investors speculated bank losses will increase and near- record oil prices will curb economic and profit growth. Besides indexes could close mix by the end of the session.
UBS fell 3.3%. The Zurich-based bank may post losses of 2 billion francs to 4 billion francs in the second quarter, Sonntag said, citing unidentified ``insiders.'
HBOS Plc, the U.K.'s biggest mortgage lender, fell 7.2%. Societe Generale SA cut its price estimate on the stock 24 percent to 340 pence as it lowered its earnings estimate.
British Airways, Europe's third-largest airline, sank 2.5%. Ryanair, Europe's biggest discount airline, dropped 3.8%. Daimler AG, the world's second-largest luxury carmaker, slipped 1.1%.
Shell, Europe's largest oil producer, added 1.9%. Total, the region's third-biggest, gained 2.1%.
Volvo AB and MAN AG retreated as UBS downgraded the truckmakers' shares to ``sell'' from ``neutral,'' saying sales volumes will probably decline. Volvo, the world's second-largest truckmaker, fell 3.2%. MAN, Europe's third- biggest truckmaker, dropped 4.1%.
Barratt Developments Plc led a retreat among U.K. homebuilders after the Financial Times reported large asset writedowns may be announced in next month's reporting season. Land-value declines following the slide in house prices could range from 15 to 80 percent, the newspaper said, citing ABN Amro NV analyst John Messenger.

US stocks closed mixed Monday, as investors eyed Lehman Brothers' big loss, Apple's new iPhone announcement and some cautious talk from a pair of Fed officials.
Technology stocks Apple and Google were acting as the biggest drags.
Lehman Brothers (LEH), the fourth-largest investment bank, said on Monday that it will raise $6 billion through the issuing of stock, to help make up for an expected loss of $2.8 billion in the second quarter. Lehman's shares dropped 11% in pre-market trading. McDonald's reported May same-store sales rose 7.7%, topping the 3.6% Briefing.com consensus estimate. Financial services company CIT Group (CIT) is getting a lift in premarket action on word that the company it has agreed to a $3 billion long-term committed financing facility with Goldman Sachs (GS).
Diversified technology and manufacturing company Honeywell was outperforming. The company announced that it signed a definitive agreement to sell its Aerospace Consumable Solutions business to B/E Aerospace for $1.05 billion. Honeywell feels the Consumables Solutions unit no longer fits with Honeywell Aerospace's focus on advanced technologies.
Alcoa Inc. (AA:US) had the second-biggest gain in the Dow Jones Industrial Average, rising 3.2 percent to $40.46. The world's third-largest aluminum producer might more than double to $60 a share were it to become a takeover target, Barron's said, citing a Citigroup Inc. analyst.
CIT Group Inc. (CIT:US) rose the most since March 24, adding 14 percent to $10.45. The largest U.S. independent commercial lender said Goldman Sachs Group Inc. will provide access to $3 billion in financing.