Foreign Exchange for Monday, Dec. 2, 1985 : Dollar Higher; Gold Mostly Lower
The dollar staged a late recovery Monday after falling to two-year lows against the West German mark and British pound. The price of gold was mostly lower. Republic National Bank of New York said gold bullion was bid at $322.80 an ounce as of 4 p.m. EST, down 70 cents from the late bid Friday.
In early trading in Frankfurt, the dollar dipped below the psychologically important level of 2.50 marks to 2.4960 marks--its lowest level in 2 1/2 years--before rebounding. Later the dollar closed in Europe at 2.5143 marks, up from 2.5093 marks Friday. And by the close of trading in New York, the dollar had recovered to 2.5220 marks from Friday’s 2.5150.
European currency analysts attributed the dollar’s recovery to fading rumors about a possible realignment of the European Currency System and positive news about the U.S. economy.
In addition, some currency traders in Europe said there were unconfirmed reports that the West German central bank sold marks to support the dollar.
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