FINANCIAL MARKETS : CURRENCY : Holidays Abroad Slow Dollar Trading

The dollar ended mixed against key foreign currencies in thin, abbreviated worldwide trading.

Currency dealers said trading was quiet, with Japanese markets closed for a national holiday. Many European markets will be closed today for May Day, and some dealers took an early, extended break, they said.

“With all the various holidays this week there doesn’t seem to be any reason to break from the trading ranges,” said Trevor Woodland, chief corporate trader for Harris Trust & Co. in Chicago. “Everybody is in a bit of a wait-and-see mood.”

Overseas, traders are expected to pay close attention to the local government elections in Britain as a test of Prime Minister Margaret Thatcher’s controversial reform of local taxes. The elections could effect the British pound.

In West Germany, Bundesbank officials are set to meet this week, although traders said it was unlikely they’ll move to raise interest rates in that country. Higher rates tend to support a currency.

In London, the dollar fell to a closing 158.85 Japanese yen from 159.08 yen at Friday’s close in Tokyo. The dollar stood at 158.90 yen in New York, down from 159.30 yen Friday.

The dollar was also weaker against the British pound. Sterling sold for $1.6390 in London, up from $1.6360 late Friday, and for $1.6405 in New York, up from $1.6350.