Foreign Exchange for Thursday, Sept. 19, 1985 : Dollar Mostly Lower; Gold Advances

The dollar mostly fell against other major currencies in U.S. trading Thursday, reversing a modest advance in Europe.

Gold prices rose worldwide. Republic National Bank in New York quoted gold as of 4 p.m. EDT at $320 an ounce, up $5.25 from Wednesday’s late bid.

Currency dealers said the dollar was buffeted as traders adjusted their portfolios in advance of the Commerce Department’s report today on U.S. economic growth in the third quarter. The agency is scheduled to release its initial, or “flash,” estimate of the gross national product, which is subject to later revision once the quarter is over.

Analysts have suggested that, if the flash estimate shows a notable acceleration of economic growth from the first half of 1985, it could trigger a rise in interest rates.

That in turn would lift yields on investments denominated in dollars, making the dollar relatively more attractive.