Dollar Retreats to Lowest Level of Year

The dollar extended its broad retreat Wednesday, falling to its lowest level in more than 10 months, as traders continued to look to other currencies for better returns on their investments.

High interest rates in Britain and expectations of lackluster economic growth in the United States continued to undercut the dollar, which has slipped more than 14% since hitting record heights in late February.

The price of gold stabilized in quiet trading. Republic National Bank of New York said gold bullion was bid at $315 an ounce as of 4 p.m. EDT, little changed from earlier levels in Asia and Europe and up $1.50 from the late bid Tuesday.

The British pound continued to lead the charge against the dollar.

Currency dealers said investors were switching money out of the dollar and into sterling to take advantage of double-digit British interest rates.