Foreign Exchange for Wednesday, Jan. 23, 1985 : British Pound Hits Lows in Europe

Worries about falling oil prices sent the British pound tumbling to new European lows Wednesday as the dollar turned in a mixed performance in listless trading on world foreign exchange markets.

At the close of trading in London, the pound had dropped to a record low of $1.1125 from $1.1242 late Tuesday. Later in New York, sterling was quoted at $1.1128 against $1.1230 late Tuesday.

As sterling drifted lower Wednesday, London currency dealers said there was no sign of support by the Bank of England.

The threat of new central bank intervention against the dollar, meantime, held down the U.S. currency.

Meanwhile, with oil prices still slumping and the outlook bright for holding down inflation, gold fell sharply in Hong Kong and Europe. Republic National Bank in New York said gold bullion was bid at $301.40 an ounce, down $1.10 from the late bid Tuesday.