Foreign Exchange for Thursday, Dec. 19, 1985 : Dollar Falls Against Most Currencies

The dollar fell slightly against most major currencies in light trading Thursday as dealers waited for fresh evidence about the strength of the U.S. economy.

The price of gold rose in most international bullion markets.

Currency traders appeared to be waiting for the release today of the first government estimates of fourth-quarter U.S. economic growth, said William Orsini, a senior commercial trader for the New York branch of the Bank of Montreal.

If the economy remains sluggish, interest rates would be expected to fall further in the United States, making returns less attractive on dollar-denominated investments.

The dollar showed little strength against the Japanese yen in spite of reports that Japan might allow its interest rates to fall, according to Howard Kurz, chief trader in New York for Bank of America.

Kurz said traders were skeptical and wanted to see if Japanese interest rates actually fall.