Foreign Exchange for Tuesday, Jan. 7, 1985 : Dollar Advances in U.S.; Gold Rises
The dollar turned up against most major currencies in U.S. trading on Tuesday while the Canadian dollar recovered a bit from its near-record low.
Gold prices rose. Bullion was quoted at $330.50 an ounce at Republic National Bank at 4 p.m. EST, up $1.75 from Monday’s late bid.
The dollar was supported by investors taking profits in foreign currencies, said William Orsini, a senior commerical trader on the currency desk of the Bank of Montreal in New York. In addition, Orsini said: “There’s a belief in the market that the central banks, the members of the G-5, that they would like to see this process slowed down a bit. We could be fairly close to establishing a bottom here (for the dollar) in the short-term.”
The five major industrial nations, also known as the G-5, agreed in September to jointly pressure the dollar, which repeatedly had soared to record heights and is blamed for a staggering U.S. trade deficit. The dollar has since fallen dramatically.
