Dollar Mostly Lower Abroad; Gold Is Mixed
The U.S. dollar closed lower against most currencies in European trading today as traders took profits from the dollar’s rise of last week. Gold prices were mixed.
Rising interest rates kept the dollar from falling even further, currency dealers said. The interest rate on overnight dollar deposits in Europe rose of a percentage point to 8.375% Monday, making the dollar more attractive to investors.
The profit taking came as markets awaited Tuesday’s release of the U.S. index of leading economic indicators. Today’s report that sales of new single-family homes rose 8.9% in March had little effect on the dollar, dealers said.
The dollar rose against the Swiss franc and Canadian dollar.
The U.S. currency gained value last week in response to higher interest rates. Before that, bad news about the U.S. economy pushed the dollar into a two-month tailspin.
The British pound rose to $1.2312, compared with $1.2145 Friday.
Tokyo markets were closed for the emperor’s birthday. The dollar was quoted in London at 252.72 Japanese yen, up from Friday’s close in Tokyo of 252.40 yen.
Other Late Rates
Other late dollar rates, compared with late Friday’s levels: 3.1235 West German marks, down from 3.1300; 2.6215 Swiss francs, up from 2.6100; 9.5250 French francs, down from 9.5675; 3.5315 Dutch guilders, down from 3.5385; 1,992.50 Italian lire, down from 2,006.00; 1.3687 Canadian dollars, up from 1.3650.
Gold was quoted in London at a late bid price of $323.30 an ounce, up from $321.50 late Friday.
In Zurich, gold closed at $322.60 bid, down from Friday’s $323.75.
Earlier, in Hong Kong, gold rose 31 cents to close at $324.05 bid.
Silver was quoted in London at a late bid of $6.260 an ounce, up from $6.255 dollars Friday.