Foreign Exchange for Friday, June 14, 1985 : Dollar Sinks on False Rumor; Gold Up
Sharply lower U.S. interest rates and an unfounded rumor that President Reagan had a heart attack sent the dollar tumbling against other major currencies in worldwide trading Friday.
Gold prices rose. Republic National Bank in New York quoted gold as of 4 p.m. EDT at $319 an ounce, up $4.80 from Thursday’s late bid.
In hectic European trading, dealers said the dollar lost up to 1.5% of its value in less than 30 minutes after the rumor concerning Reagan circulated.
The rumor was still alive when the U.S. market opened.
The dollar stabilized after White House spokesman Larry Speakes denied the rumors, saying the President was “hale and hearty” and had arrived at the Oval Office in the morning as usual.
But before the dollar could recover, it came under renewed pressure from government economic reports.