Dollar Recovers; Gold Off
The dollar recovered some early losses but was still lower at mid-morning today against all major currencies in European trading. Gold bullion prices were also fractionally lower.
A Frankfurt dealer said rumors in the Far East that President Reagan had become ill pushed the dollar sharply lower early in European trading. But European dealers didn’t take the rumor seriously and strong buying support pushed the currency upwards in later trading.
Other factors, including the U.S. Treasury’s relatively smooth record $21.75 billion quarterly auction, were generally neutral for the dollar, dealers said.
In Tokyo, the dollar closed at 237.95 Japanese yen, down from 238.55 yen.
In London, the pound sterling gained against the dollar. It cost $1.3560 to buy one pound, more than the $1.3525 price late Thursday.
Other mid-morning dollar rates, compared to late Thursday, were: 2.8300 West German marks, down from 2.8360; 2.33925 Swiss francs, down from 2.3450; 8.6475 French francs, down from 8.6600; 3.1790 Dutch guilders, down from 3.1900; 1,893.50 Italian lire, down from 1,899.00, and 1.35825 Canadian dollars, down from 1.3609.
Gold bullion prices were virtually static in quiet trading.
In Zurich, Europe’s biggest bullion market, gold was selling at a bid price of $322.50 an ounce at noon, down from $322.80 late Thursday.
In London, the city’s five major bullion dealers set a recommended trading price of $322.40 at mid-morning, down from late Thursday’s closing bid of $322.50.
