Dollar Up Despite Intervention Fears

The dollar rose broadly Tuesday but currency dealers said traders continued to worry about possible central bank intervention against the U.S. currency.

Gold prices rose abroad but fell later in the United States. Republic National Bank in New York quoted gold bullion at $326 an ounce as of 4 p.m. EDT, down 50 cents from the late bid Monday.

Currency dealers said West Germany’s central bank intervened by selling about $35 million. But keen demand, particularly among corporations eager to buy dollars at current exchange rates, kept the dollar aloft, dealers said.

Albert Soria, a vice president and foreign exchange manager at Swiss Bank in New York, said the market is still testing the resolve of the central banks. “The activity today was mainly to see how far we can push the central banks,” Soria said.

He said the central banks could feel the need to intervene later this week if U.S. government statistics indicate that the economy has rebounded significantly.