Dollar Declines in Europe

A smaller-than-expected reported increase in U.S. retail sales pushed the U.S. dollar lower today in Europe. Gold prices rose.

Currency dealers said the dollar fell in response to Tuesday’s U.S. Commerce Department announcement that retail sales rose 0.9% in April. Most traders had expected an increase of at least 1.5%.

An economic boom in the United States has been a major factor behind the dollar’s rise in recent years, and the dealers said the retail sales statistic indicated that the United States had not recovered from slow economic growth during the first quarter of this year.

In Tokyo, the dollar closed at 250.75 Japanese yen, down from 251.55 yen Monday. Later, in London, the dollar fell further to 249.85 yen.

The British pound rose to $1.2737, up from $1.2512 late Monday.

Other late dollar rates, compared to late Monday’s levels, were: 3.0515 West German marks, down from 3.0840; 2.5785 Swiss francs, down from 2.5935; 9.3475 French francs, down from 9.4000; 3.4550 Dutch guilders, down from 3.4805; 1,959.50 Italian lire, down from 1,973.50, and 1.3775 Canadian dollars, up from 1.3745.

Gold was quoted in London at a late bid price of $327.10 an ounce, up from $324.75 on Monday.

In Zurich, the metal rose to $327.50, compared to $324.50 the day before.

Earlier, in Hong Kong, gold gained $6.63 to close at $324.48 bid.

Silver was quoted in London at a late bid of $6.685 an ounce, up from $6.505 Monday.