Dollar Higher in Active U.S. Trading
The dollar advanced broadly Wednesday in active trading in the United States after falling earlier in the day in Japan and Europe.
Analysts said the strong closing performance reflected speculation in currency markets that a government report due today on U.S. economic growth in the current quarter would indicate that the economy is reviving.
Gold prices were also mixed, tumbling late in the day in the United States after making modest gains earlier in Hong Kong and Zurich. In after-hours trading, Republic National Bank in New York quoted a bid for gold bullion at $321.75 an ounce, down $5.75 from Tuesday’s late bid.
The dollar began its day by falling in Japan and Europe, extending a decline assisted in the previous session by a half-percentage-point cut in the prime lending rate charged by major U.S. banks.
But the dollar began to rebound from its lows of the session before trading ended in Europe after the U.S. government reported that consumer spending rose in May.