LONDON. Nov 10: The dollar continued to rise against leading international currencies Monday after fresh gains on the US stock market late last week and amid a build up of tensions with Iraq, says AFP.

The cfollar was being traded at 119.68 yen from 118.38 yen and 1.6770 marks from 1.6637.

An economist at Bank of America. Robert Hayward, said that "International market stability is helping the dollar."

The US market rose after soothing words from Federal Reserve chief. Alan Greenspan, who suggested that the worst of the recent market volatility might be over.

The Dow Jones Industrial Average drew close to 9.000 points for the first time since late July.

But the London-based economist warned that Japan and Europe might still suffer some volatility.

"The US now looks more stable whefeas there are some medium-term doubts about the Japanese and European economies." Hayward said.

He pointed to a number of recent surveys which showed business confidence in France. Britain and Germany to be at extremely low levels.

European officials have said that there would be no cut in key European interest rates until convergence of rates in the 11 future member countries of Economic and Monetary Union (EMU) at the 3.3 per cent seen in Germany and France.

The dollars gained from expectations that the International Monetary Fund (IMF) would finalise a ball-out package for the Brazilian economy in the coming days.

Sterling followed the dollar higher, rising above 2.79 marks, despite a bigger-than-expected cut in British interest

rates last week.

The half-point cut in the British base rate was seen posi tively by the markets as seeking a speedy remedy to the threat of looming recession here.

The dollar was being traded at 1.6770 marks from 1.6637. 119.68 yen from 118.38. 1.3791 Swiss francs from 1.3696 and 5.6145 French francs from 5.5791.

The mark was being traded at 71.26 yen from 71.19. 0.8238 Swiss francs from 0.8233. was unchanged at 989.18 lire and was at 3.3529 French francs from 3.3518 and 85.05 pesetas from 85.01.

Starling was being traded at 1.6588 dollars from 1.6612, 2.7906 marks from 2.7638, 198.02 yen from 196.61, 2.2904 Swiss francs from 2.2751 and 9.3133 French francs from 9.2677.

Gold fell to 292.70 dollars an ounce from 293.5 dollars.