Dollar Falls Against All Key Currencies but Pound

The U.S. dollar fell Wednesday against all key European currencies except the British pound in moderately active trading. Gold prices rose.

Foreign exchange dealers said the U.S. government’s upward revision of its second-quarter gross national product growth rate to 2% Tuesday was shrugged off in early trading in Europe. In July, the GNP figure had been posted as a 1.7% increase, and most investors had been expecting a downward revision.

“On balance, there isn’t much evidence that the U.S. economic growth is picking up speed,” one Frankfurt dealer commented.

In Tokyo, the dollar rose to a closing 237.45 Japanese yen from Tuesday’s 237.05 yen. Later, in London, it was quoted at 237.15 yen.

In London, the dollar gained against the British pound amid widespread predictions of more interest rate cuts in Britain. It cost $1.3890 to buy one pound sterling, less than $1.39075 late Tuesday.

Other late dollar rates compared with late Tuesday were: 2.7800 West German marks, down from 2.7850; 2.2757 Swiss francs, down from 2.2815; 8.4690 French francs, down from 8.5050; 3.1260 Dutch guilders, down from 3.1325; 1,862.00 Italian lire, down from 1,865.50, and 1.35625 Canadian dollars, down from 1.35725.