Dollar Edges Higher; Gold Mixed
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NEW YORK — The dollar edged upward against most other major currencies in light trading Wednesday. Gold prices were mixed.
“A lot of traders are awaiting (today’s U.S. government) July industrial production report to see a clue of what’s going on in the economy,” said Gary Dorsch, senior money-market economist at Chicago’s G. H. Miller & Co.
He said short covering by speculators, who were buying back dollars to replace dollars that they had previously borrowed and sold, helped drive the U.S. currency upward as markets opened.
In addition, he said, the dollar was supported by expectations that the West German central bank will soon cut two key interest rates by half a percent. This would make U.S. interest rates, and hence dollar investments, more attractive.
“A lot of speculation that they will cut those rates prompted additional short covering,” Dorsch said.
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