Foreign Exchange : Dollar Rallies in Volatile Trading
The dollar staged a late rally in volatile, speculative trading Tuesday, reversing sharp losses from earlier in the day.
Some currency traders said confusion was widespread in currency markets.
“Banks here are running around in circles,” said Howard Kurtz, chief trader at Bank of America’s international trading center in New York.
Gold prices also turned mixed, edging higher in Hong Kong, falling in Europe and then rising at day’s end in the United States. Republic National Bank in new York said gold bullion was bid at $290.50 an ounce as of 4 p.m. EST, against $289.10 late Monday.
Currency dealers said that, following a steep decline on Monday, speculative selling forced the dollar even lower as trading resumed Tuesday.
Kurtz said some dollar purchases came from Latin American central banks, which need dollars to repay huge foreign debts.
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