Foreign Exchange for Tuesday, Nov. 5, 1985 : Dollar Hits 4 1/2-Year Low Against Yen

The dollar plunged to a 4 1/2-year low against the Japanese yen Tuesday but later rose against other major currencies in European and U.S. trading.

Gold prices fell in Hong Kong, Europe and New York. Republic National Bank of New York said gold was bid at $324.50 an ounce as of 4 p.m. EST, down 75 cents from Monday’s late bid.

In Tokyo, the dollar fell to 207.77 yen, the lowest close for the dollar since March 18, 1981, when the dollar traded for 206.95 yen. That compared to a closing rate of 209.85 yen Friday. Japanese financial markets were closed Monday for a holiday.

Later Tuesday in London, the dollar was quoted at 207.55 yen, and by the end of the trading day in New York, the dollar closed at 207.35 yen, down from 208.075 yen late Monday.

Some currency analysts linked the U.S. currency’s decline against the yen partly to statements by Japanese officials that they will push the yen higher by raising interest rates, making yen-denominated investments more attractive.