Foreign Exchange for Tuesday, March 5, 1985 : No Intervention; Dollar Surges
The dollar surged Tuesday in the absence of central bank intervention, closing in on the record heights it reached last week.
As the dollar rose, gold fell. Republic National Bank in New York said gold bullion was bid at $286 an ounce, down 30 cents from the earlier close of the New York Commodity Exchange and a drop of $4.20 from the late bid Monday.
Last week, the dollar reached all-time highs against the currencies of Britain, Canada, France and Italy before a massive intervention by European central banks halted the historic rally.
But the dollar showed continued strength despite the sale of nearly $4 billion on world currency exchanges by central banks in the final three days of last week. And it rose further as central banks kept out of currency markets this week and as U.S. government officials and economists voiced skepticism about the impact of intervention.
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