Dollar Drops Against Major Currencies

The U.S. dollar was down against all major currencies in late trading in Europe on Thursday.

Dealers in Frankfurt, West Germany, said there was relatively strong corporate demand for dollars but it was held back by fears of central bank intervention and by a discouraging U.S. economic indicator.

Dealers said the market for dollars was depressed by news that retail sales fell 4.2% in the United States in October instead of the 3.3% initially reported. However, the Commerce Department also announced that retail sales rose 1.1% in November.

In Tokyo, where trading ends as Europe’s business day begins, the dollar fell to a closing 202.80 Japanese yen from 203.70 yen at Wednesday’s close.

In London, the dollar was down more than 2 cents against a stronger British currency. The pound cost $1.4395, down from $1.4112 late Wednesday.

Other dollar rates late Thursday, compared to late Wednesday, included: 2.5225 West German marks, down from 2.5450; 2.10925 Swiss francs, down from 2.1252; 7.7025 French francs, down from 7.7635; 2.8400 Dutch guilders, down from 2.8625; 1,720.50 Italian lire, down from 1,732.00, and 1.38775 Canadian dollars, down from 1.3918.

In Hong Kong, gold fell to a bid of $317.43 an ounce from $318.26 on Wednesday. Later, in London, gold was bid at $317.25 an ounce in late trading, up $2 from Wednesday. In Zurich, gold closed at $317.50 an ounce, up from $316.50 Wednesday.