diff --git a/gcc/ChangeLog b/gcc/ChangeLog
index 1411b91ffc8b3962ef5e24e1edb5ce6000dc6eb0..5abb227139c8a43fac0ae82329921cd672213cef 100644
--- a/gcc/ChangeLog
+++ b/gcc/ChangeLog
@@ -1,3 +1,9 @@
+2003-05-19  Neil Booth  <neil@daikokuya.co.uk>
+
+	* c-opts.c (c_common_decode_option): Don't accept dollars
+	as identifier characters in assembly.
+	* doc/cpp.texi: Document this.
+
 2003-05-19  Seth Arnold  <sarnold@wirex.com>
 	    Aldy Hernandez  <aldyh@redhat.com>
 
diff --git a/gcc/c-opts.c b/gcc/c-opts.c
index 49189c4d28991b614a8108c641e1a633f653d095..7d4c0e5f61bf58e3cf41baaaf413c74459ffb59d 100644
--- a/gcc/c-opts.c
+++ b/gcc/c-opts.c
@@ -1399,6 +1399,7 @@ c_common_decode_option (argc, argv)
 
     case OPT_lang_asm:
       cpp_set_lang (parse_in, CLK_ASM);
+      cpp_opts->dollars_in_ident = false;
       break;
 
     case OPT_lang_objc:
diff --git a/gcc/doc/cpp.texi b/gcc/doc/cpp.texi
index 63ac814c0f5123e958029cb91fb2d7a7f45a160f..4a41a462a1882e9f9bfd5abbb645a8ce39dd5690 100644
--- a/gcc/doc/cpp.texi
+++ b/gcc/doc/cpp.texi
@@ -3720,9 +3720,12 @@ implementation-defined characters.
 GCC allows the @samp{$} character in identifiers as an extension for
 most targets.  This is true regardless of the @option{std=} switch,
 since this extension cannot conflict with standards-conforming
-programs.  Currently the targets that by default do not permit
-@samp{$} are AVR, IP2K, MMIX, MIPS Irix 3, ARM aout, and PowerPC
-targets for the AIX and BeOS operating systems.
+programs.  When preprocessing assembler, however, dollars are not
+identifier characters by default.
+
+Currently the targets that by default do not permit @samp{$} are AVR,
+IP2K, MMIX, MIPS Irix 3, ARM aout, and PowerPC targets for the AIX and
+BeOS operating systems.
 
 You can override the default with @option{-fdollars-in-identifiers} or
 @option{fno-dollars-in-identifiers}.  @xref{fdollars-in-identifiers}.