21.   At Natwest Markets analyst Stuart Frost said the French franc was falling on uncertainty surrounding the French presidential elections in spring.

22.   At the Royal Bank of Scotland analyst Marion Bell said that the franc had fallen more in response to the tax announcement than because of the rumours.

23.   At the Royal Bank of Scotland, analyst Marion Bell said that the franc had fallen more in response to the tax announcement than because of the rumours.

24.   But the franc fell against the dollar which was generally firm.

25.   Dealers said that the French franc fell because of crumbling morale in French households during the month of May.

26.   The Swiss franc fell sharply against the mark early on Monday when dealers expressed some concern over a restructuring of the Swiss banking system, analysts said.

27.   There continues to be an underlying suspicion on markets that the new administration headed by Prime Minister Alain Juppe might be prepared to allow the franc to fall.

28.   This supports the view that the monetary authorities might deliberately allow the franc to fall so that interest rates can also fall.

29.   This uncertainty had been a factor causing the franc to fall last week and could undermine the currency at any time, financial analysts say.

30.   Meanwhile the French franc fell sharply against the German mark following calls for a new day of national protests Saturday.