Dollar Stages Broad Advance

The U.S. dollar rose against most currencies Friday in response to congressional agreement on the U.S. budget. Gold prices fell.

Currency dealers said the dollar was higher following votes in Congress to cut $57 billion from the budget for the next fiscal year. The cut strengthed confidence in the U.S. economy and thus in the U.S. currency.

Falling oil prices prompted investors to continue to switch money out of the British pound and into the dollar, the dealers said. Venezuela cut the price of its heavy crude oil Thursday.

The dollar ended the week lower than last Friday against all major currencies except the pound.

In Tokyo, the dollar closed at 237.50 Japanese yen, up from 236.60 yen Thursday but down from 239.15 yen last Friday. Later Friday, in London, the dollar was quoted at 237.42 yen.

Other late dollar rates, compared to late Thursday and with last Friday’s rates in parentheses: 2.8250 West German marks, up from 2.8230 (2.8780); 2.3175 Swiss francs, down from 2.3215 (2.3515); 8.6175 French francs, up from 8.6075 (8.7500); 3.1705 Dutch guilders, up from 3.1675 (3.2375); 1,896.50 Italian lire, up from 1,890.00 (1,923.00); 1.3520 Canadian dollars, down from 1.3541 (1.3527).