Dollar Swings Widely Abroad as Gold Rises

The dollar was subjected to wide swings in European currency markets today, falling sharply as rumors surfaced that President Reagan had suffered a heart attack but rebounding when the White House said Reagan was “hale and hearty.”

Declining U.S. interest rates and signs of continued sluggish economic activity also pushed the dollar lower, however. Gold prices gained.

With markets in West Germany closed for a long holiday, trading was light and dealers said investors were watching a series of economic reports released today.

In Tokyo, where trading ends before Europe’s business day begins, the dollar ended the week at 249.50 yen, down from Thursday’s close of 249.90. Last Friday the closing rate was 248.60.

In London, the dollar was quoted at 249.15 yen.

Other dollar rates at mid-morning, compared to late Thursday, were: 3.0920 West German marks, down from 3.0980; 2.5938 Swiss francs, down from 2.6107; 9.4025 French francs, down from 9.4250; 3.4840 Dutch guilders, down from 3.4875; 1,968.25 Italian lire, down from 1,969.00, and 1.3700 Canadian dollars, down from 1.3723.

In London, the British pound was quoted at $1.2695, compared to $1.2647 on Thursday.

Gold opened in London at a bid price of $314.60 an ounce, compared to Thursday’s $313.75. At mid-morning today, the city’s five major bullion dealers fixed a recommended price of $315.75.

In Zurich, the bid noon price was $315.50, up from $314.50 on Thursday.

Earlier, in Hong Kong, gold rose the equivalent of 93 cents to close at a bid $315.65.