Dollar Sets Records, Then Retreats

The dollar turned in a mixed performance on world foreign exchanges Tuesday, shattering records early in the day against the currencies of Italy, Spain, South Africa and Sweden, but retreating in later U.S. trading. The British pound recovered slightly from its all-time low.

Gold prices were mixed in quiet trading, rising in Hong Kong and Europe but retreating at day’s end in the United States. Republic National Bank in New York said gold bullion was bid at $301.25 an ounce, down 25 cents from the earlier close of the New York Commodity Exchange and off $1.55 from the late bid Monday.

The British pound, which dipped to a record low of $1.10 in Hong Kong early Monday, has gained strength since the Bank of England raised minimum interest rates by 1.5 percentage points later that day.

In London, the pound was quoted at $1.1205 in late trading Tuesday, up from $1.1137 Monday. Later in New York, sterling rose to $1.1190 from Monday’s late rate of $1.1125.

Among the new lows recorded, 1,000 Italian lira fell to 51.05 cents, 100 Spanish pesetas dropped to 56.64 cents and the Swedish krona fell to 10.93 cents.