Foreign Exchange for Monday, July 29, 1985 : Dollar, Off Abroad, Rebounds in U.S. Trading
The dollar rose against most other major currencies in U.S. trading Monday to rebound from a slide in European activity.
Gold prices rose on both continents, with Republic National Bank in New York quoting gold as of 4 p.m. EDT at $323.50 an ounce, up $2.25 from Friday’s late bid.
The dollar’s advance in the United States allowed the currency not only to recover from declines earlier in the day in Europe but also to steady following its steep drop in U.S. trading Friday.
The size of the dollar’s losses Friday caught some traders by surprise, although they noted that foreign exchange activity was light, which might have exaggerated the dollar’s slide.
Regardless, the dollar has been under pressure recently because of concern in the foreign exchange markets that the American recovery remains sluggish and that little progress is being made to narrow the massive U.S. budget deficit.