Intervention Stalls Dollar’s Advance
The dollar rose against the Japanese yen and British pound but fell against other currencies Friday in a rally that was stunted by central bank intervention in Japan and West Germany.
Despite the late retreat, the dollar was higher than at the end of last week.
Gold bullion turned in a mixed performance in quiet trading, rising at the end of the day. Republic National Bank of New York said gold was bid at $324 an ounce, up $2.25 from Thursday’s late bid.
After a slide to nearly five-year lows during the week, the dollar rose against the yen in Tokyo. Traders there said the Bank of Japan intervened to stop the dollar from rising further.
The dollar’s pre-intervention showing in Tokyo on Friday pushed it up in early European trading and prompted intervention by the Deutsche Bundesbank, West Germany’s central bank. Dealers in Frankfurt said the bank spent more than $100 million to keep the dollar from surging beyond the 2.65-mark point.
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