Foreign Exchange for Friday, June 7, 1985 : Jobless Report Lifts Dollar; Gold Off
The dollar rose broadly Friday, lifted by a wave of buying that followed a Labor Department report of unexpected employment gains last month in the United States.
Rising interest rates in U.S. bond markets following the employment report helped the dollar hold onto its gains, analysts said.
As the dollar rose, gold prices drifted lower in quiet European and U.S. trading, reversing slight gains earlier in the day in Hong Kong. Republic National Bank of New York said gold bullion was bid at $314.25 as of 4 p.m. EDT, down $1.25 from the late bid Thursday and off $1.75 from the end of the previous week.
Foreign exchange dealers in Europe and the United States attributed the rebound to short covering.
Many traders earlier had sold the dollar short, selling borrowed dollars in hopes of further declines in the currency before they must enter the market to buy dollars and complete their contract.