Dollar Falls in Quiet Trading; Gold Up
The dollar fell against most major currencies in quiet activity Monday as traders sold the U.S. currency to cash in on its sharp gains of the previous week.
Gold prices turned mostly higher in quiet trading. Republic National Bank of New York said gold bullion was bid at $324.75 an ounce, up $2 from the late bid Friday.
The Federal Reserve Board said its measure of the dollar against 10 other leading currencies, which had climbed 4.6% in the previous six sessions, fell 1.2% on Monday.
Currency dealers described the dollar’s sell-off Monday as a correction, or temporary pause, in the latest run-up.
The dollar’s recent rally was sparked in part because of fresh expectations of continued high interest rates in the United States, something that would keep returns attractive on dollar-denominated investments.