Foreign Exchange for Monday, Jan. 27, 1986 : Dollar Mostly Lower; Gold Is Mixed

The dollar fell against all major currencies except the British pound and the Canadian dollar in subdued U.S. trading Monday after reaching a seven-year low against the Japanese yen in Tokyo. Gold prices were mixed in trading around the world. By 4 p.m. in New York, the Republic National Bank quoted gold at $354 an ounce, down $3.75 from Friday’s late bid.

The dollar declined to 122.45 on the Federal Reserve Board’s index which measures its value against the currencies of 10 major trading partners of the United States. The level was off 0.25 from Friday and the lowest since mid-May of 1983.

James T. McGroarty, a vice president at Discount Corp. in New York, described trading as “lethargic,” noting dealers were reluctant to buy or sell heavily amid continuing reports that the Bank of Japan may soon reduce its discount rate. There has been no official statement from Japan.

Some dealers stayed on the sidelines awaiting new U.S. economic statistics due later this week.