Foreign Exchange for Thursday, June 20, 1985 : Dollar Drives Higher; Gold Lower
The dollar drove higher Thursday after the government reported that the U.S. economy has picked up steam, a development that analysts said diminishes chances for further declines in interest rates.
Gold prices fell. In after-hours trading, Republic National Bank in New York quoted a late bid for gold at $314.50 an ounce, down $7.25 from Wednesday’s late bid.
The dollar began its trading day by rising to 247.37 Japanese yen in Tokyo from 246.95 yen Wednesday in anticipation that the Commerce Department’s report due later in the day on growth in the U.S. economy would be strong.
The report, released midway through the European trading day and at the start of business in the United States, said the gross national product was growing at an annual rate of 3.1% in the current quarter, up from a revised 0.3% growth rate in the first quarter.