Dollar Mixed in U.S. Trading
dollar gave a mixed performance in moderately quiet U.S. trading Wednesday after moving lower against most major foreign currencies in trading abroad.
The price of gold rose. Republic National Bank of New York said gold bullion was bid at $325 an ounce as of 4 p.m. EST, up 50 cents from Tuesday’s late bid.
Currency dealers in New York said that, at the outset of trading, there was a perception that the dollar would head lower. But, when the anticipated declines failed to materialize, short-covering pushed the dollar higher.
In a short sale, a trader sells borrowed dollars in hopes of profitting by purchasing dollars in the open market later at a lower exchange rate.
Short-covering occurs when a trader buys borrowed dollars to protect against possible losses.