Dollar Again Sets Records

The dollar shattered records for the seventh straight day today, even though trading was thin with American markets closed for Lincoln’s Birthday. Gold prices gained.

The dollar’s strength and the absence of central bank intervention to stop its climb combined to propel the dollar to new trading highs against British, French and Italian currencies and a 13-year European trading high for the West German mark and Dutch guilder.

In trading at mid-morning, one dollar bought: 3.2738 West German marks, up from 3.2675; 2.7855 Swiss francs, down from 2.7870; 9.9945 French francs, up from 9.9545; 3.7065 Dutch guilders, up from 3.6960; 2,011.75 Italian lire, up from 2,004.50, and 1.33845 Canadian dollars, down from 1.33915.

In Tokyo, where trading ends before Europe’s business day begins, the dollar started the day by setting a 27-month closing high of 261.80 yen, up from Friday’s 260.50. Markets in Japan were closed Monday for a national holiday. Later today in London, the dollar was quoted at 262.27 yen.

Gold prices moved higher in quiet trading.

The metal opened in London at a bid price of $303.50 an ounce, compared to late Monday’s $299.75. At mid-morning today, the city’s five major bullion dealers fixed a recommended price of $303.45.

In Zurich, the bid price was $303.40, up from $299.50 Monday.

Earlier, in Hong Kong, gold rose $2.80 to close at a bid $304.45.

In New York Monday, gold rose $4.10 to close at $304.60.

Silver was quoted in London Tuesday at a bid price of $6.23 an ounce, up from Monday’s $6.10.