Foreign Exchange for Thursday, Oct. 10, 1985 : Mixed Performances for Dollar, Gold

After advancing broadly for three straight sessions, the dollar turned in a mixed performance Thursday as traders remained preoccupied with the prospect of further central bank intervention against the dollar.

The dollar was helped late in the day by a Federal Reserve Board report of an unexpectedly large $5.3-billion rise in the basic U.S. money supply in the final week of September.

Gold bullion prices also were mixed. Republic National Bank in New York quoted gold as of 4 p.m. EDT at $325.50 an ounce, up 75 cents from Wednesday’s late bid.

Currency dealers said central banks are using intervention, or sales of dollars, as a tool to keep a ceiling on the dollar’s upward movements.

In the absence of any dollar dumping by the central banks, the dollar would strengthen markedly, partly reflecting the keen interest of international corporations to buy dollars at the lowest exchange rates in about 18 months, the dealers said.