Economic Reports Push Dollar Down

The dollar fell against all major foreign currencies except the Canadian dollar Thursday, with analysts attributing the decline to U.S. government reports of a record trade deficit and a marginal rise in the index of leading economic indicators.

Gold prices fell. Republic National Bank of New York said gold bullion was bid at $324.75 an ounce as of 4 p.m. EST, down 75 cents from the late bid Wednesday.

The dollar had fallen sharply in European trading following the release of the U.S. economic statistics but later recovered slightly, as its lower value prompted strong buying of the currency, according to traders.

Pierre Rinfret, president of Rinfret Associates in New York, said Thursday’s declines were a continuation of the trend of recent weeks.

Rinfret said he believed the Federal Reserve had been driving the dollar down by intervening in currency markets, and took advantage of the poor trade figures to “give it a shove” downward.